U.S. Session Recap – July 3, 2014

  • US ADP report: 281K vs. 205K expected and 179K previous
  • US factory orders: -0.5% vs. -0.3% expected and 0.8% previous
  • Chinese non-mfg PMI: 55.0 vs. 55.5 previous

What a comeback! Thanks to a positive ADP report, the Greenback managed to regain some of its intraweek losses against its counterparts. Aside from the big upside surprise in its headline number, the private jobs component of the ADP report had also clocked in its biggest monthly increase since December 2012. This boosted the dollar as it encouraged speculations of a healthy NFP report this week.

It also didn’t hurt that the other regions’ economic reports surprised to the downside. For example, weaker-than-expected Spanish unemployment and euro zone PPI numbers dragged EUR/USD by another 33 pips to 1.3655 throughout the session while a negative surprise in Australia’s trade numbers helped pull AUD/USD 18 pips below its open price during the U.S. forex trading session.

The dollar-positive moves were also seen in other major Greenback pairs. USD/JPY saw a jump from 101.47 to 101.78 while USD/CAD also rose by 31 pips to 1.0667 as USD/CHF inched 12 pips higher to .8892.

The only survivor against the dollar was the pound, which enjoyed an extended rally following the release of the UK’s stronger-than-expected construction PMI and housing numbers. Remember that higher house prices and a strong economy would increase the BOE’s incentives to hike its rates earlier than expected. As a result, GBP/USD had stayed near its new 5-year highs while GBP/JPY registered another 52-pip jump to 174.71.

Let’s shift our attention to the comdolls over the next couple of hours. China had just released a weak non-manufacturing PMI and word on the hood is that Australia had also just printed a weak retail sales reading. These reports are closely watched by market players so make sure you got yo eyes on them too!

See also:

London Session Recap

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