U.S. Session Recap – August 21, 2014

  • FOMC minutes: job gains might bring earlier-than-expected rate hikes
  • Jon Hilsenrath: Fed rate hike debates heating up
  • CA wholesales sales up by 0.6% vs. 0.4% expected and 2.3% uptick in May
  • China HSBC flash manufacturing PMI on tap

Dollar domination was the name of the game for US forex trading session traders, as the Greenback found support from a less dovish FOMC meeting minutes.

The dollar had been slowly gaining ground for most of the week, as traders priced in an upbeat meeting minutes from the Fed. And boy, were they spot on!

Several members of the Fed hinted that the recent bout of positive employment reports could mean rate hikes sooner than many had been expecting. Jon Hilsenrath, a closely-watched chief economics correspondent for The Wall Street Journal, also said that rate hike debates are heating up among Janet Yellen and her friends.

The smell of rate hikes attracted dollar bulls, which led to EUR/USD falling to an 11-month low of 1.3261 during the US forex trading session. USD/JPY also popped up by 49 pips to 103.79, while USD/CHF rose by 22 pips to .9135. Even GBP/USD, which gained support from a hawkish BOE statement, fell by 56 pips to 1.6593.

The comdolls didn’t escape the dollar’s wrath, as AUD/USD slipped to .9287 after hitting a resistance at .9300 while USD/CAD popped 24 pips higher to 1.0972. NZD/USD, still hurting from a weak dairy auction, declined by another 19 pips to .8371.

Let’s see if comdolls bulls are in the mood to take back some of their gains today. Australia’s CB leading index had just come out with a 0.4% gain against last month’s 0.2% reading, but so far it doesn’t look like it’s having an impact on Aussie pairs.

Instead, market players might be waiting for China’s HSBC flash manufacturing PMI out at 1:45 am GMT. Analysts are expecting a 51.5 reading for the month of August, a bit lower than July’s 51.7 index reading. Any significant deviation from expectations could set the tone for comdoll pairs today, so keep your eyes peeled for surprises!

See also:

London Session Recap

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