U.S. Session Recap – Sept. 24, 2014

  • CA retail sales: -0.1% vs. 0.5% expected, 1.2% previous
  • CA core retail sales: -0.6% vs. -0.1% expected, 1.5% previous
  • US flash manufacturing PMI: 57.9 in September vs. 58.1 expected
  • US Richmond manufacturing index: 14 vs. 10 expected, 12 previous
  • US FHFA house price index: 0.1% vs. 0.5% expected, 0.3% previous

Risk aversion reigned supreme during the US forex trading session, as a couple of news reports inspired flights to lower-yielding currencies.

European currencies like the euro and the pound were doing well until reports were printed from the euro zone and the UK. As I mentioned in my London session recap, weak manufacturing in the euro zone and the UK’s public borrowing numbers didn’t help when risk aversion over geopolitical concerns hit the markets.

EUR/USD fell from an intraday high of 1.2902 and finished the day at 1.2858, 42 pips lower than its session open price. GBP/USD had also slipped to a session low of 1.6352 before closing at 1.6397.

If you’re one of them forex bulls and you think that’s bad, then you haven’t seen the comdolls! After getting a boost from a better-than-expected Chinese PMI report, the Aussie and the Kiwi got hit by the mix of risk aversion and Greenback strength that hit the markets.

AUD/USD slumped by 64 pips to .8847 while NZD/USD also dropped by 58 pips to .8069. USD/CAD, which got an extra boost from a weak Canadian retail sales data, shot up by 75 pips to 1.1070.

The forex calendar is light for Asian session traders today. A couple of hours earlier, New Zealand has released its trade balance numbers. The report showed a lower trade deficit that markets had expected, which is currently preventing the Kiwi from further losses. Australia had also printed its CB leading index and RBA financial stability review, but so far it hasn’t significantly affected the Aussie’s price action.

No other major reports are scheduled over the next couple of hours, so make sure you keep your eyes peeled for continuation of yesterday’s moves. Good luck and good trading!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. So me things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!