U.S. Session Recap – Sept. 10, 2014

  • CA housing starts prints at 192K vs. 195K expected, 200K previous
  • UK NIESR GDP estimate up by 0.6% vs. 0.5% last month
  • JOLTS job openings 4.67M vs. 4.72M expected, 4.68M previous
  • US 10-year Treasury yields hits 2.509%, highest intraday level since August 5
  • JP core machinery orders up by 3.5% vs. 4.0% expected, 8.8% previous

The dollar’s price action was as mixed as a bag of beans, as forex traders take a breather from a lively start this week.

The only data released from the US was the JOLTS job openings report. It came in at 4.67M, just a bit lower than the expected 4.72M reading and last month’s 4.68M figure. The miss was negligible enough that it was mostly shrugged off by forex traders.

What caught investor attention more (aside from the release of Apple’s new products), was 10-year Treasury yields hitting an intraday high of 2.509%. Whether it’s because of this week’s new debt offerings or market players pricing in hawkish statements ahead of the FOMC meeting, the uptick kept the Greenback supported against some of its counterparts.

EUR/USD rocketed by 60 pips to 1.2950 while USD/JPY slipped by 10 pips to 106.08. USD/CHF also experienced profit-taking with its 35-pip slide to .9320. Meanwhile, thanks to Carney’s hints of an early 2015 rate hike and a better-than-expected NIESR GDP reading, GBP/USD ended the session with a 20-pip jump to 1.6125 after hitting new multi-month lows at 1.6059.

Aussie and Kiwi traders were unable to hop on the dollar-selling bandwagon though. AUD/USD fell by a whopping 69 pips to .9210 while NZD/USD dropped by 30 pips to .8246. One possible reason for the selloff is that US traders were just pricing in Australia’s weak business confidence report and a potentially less hawkish statement from the Reserve Bank of New Zealand (RBNZ) this week.

Will investors active during the Asian forex trading session give momentum to yesterday’s comdoll weakness? Australia had just printed a surprisingly weaker Westpac consumer sentiment report, but so far it hasn’t made much impact on Aussie pairs. We don’t have any other major report scheduled in the next couple of hours, so make sure you watch your comdoll setups in case a valid trade setup pops up!

See also:

London Session Recap

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