- US new home sales: 504K vs. 430K expected and previous
- FOMC member Evans “uncomfortable” with calls for early rate hikes
- China considering replacing PBOC Governor Zhou?
- RBA Governor Stevens to give a speech today
The dollar dominated currency price action during the US forex trading session, as positive US reports got mixed in with a bit of risk aversion.
New home sales in the US shot up by 18% to a 504K reading in August, the biggest one-month jump since 1992 and a high not seen since 2008. If the burst in consumer demand continues, this could mean increased construction activity in the economy.
The report, together with escalating geopolitical concerns, are probably why currency bulls made pips rain for the dollar. EUR/USD fell by another 53 pips to 1.2783 while GBP/USD sustained a 66-pip fall to 1.6339. USD/JPY also jumped by 32 pips to 109.07 and USD/CHF rose by 40 pips to .9452.
Another big story was a Wall Street Journal report on China possibly replacing People’s Bank of China (PBOC) Governor Zhou Xiaochuan. While Gov. Zhou had officially stated that he has no plans to resign just yet, forex traders took the report as a sign that China is about to get more aggressive in responding to concerns of slowing growth.
Comdoll bulls and bears barely reacted to the news though. AUD/USD stayed in its range above .8850, while NZD/USD also stayed within the .8070 levels.
We don’t have major forex news during the Asian trading session save for a scheduled speech by RBA Governor Stevens. Watch out for potential hints on the central bank’s future policy decisions or biases, forex fans. Gotta be vigilant on those comdoll trades!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!