U.S. Session Forex Recap – Nov. 6, 2014

  • US ADP report prints at 230K vs. 220K expected, 225K previous
  • US ISM non-manufacturing PMI misses at 57.1 vs. 58.0 expected, 58.6 previous
  • US Republican win sparks risk appetite
  • AU employment numbers exceeds market expectations

Major currency pairs were mostly stuck in Rangeville during the U.S. forex trading session, as traders priced both dollar strength and a bit of risk-taking.

A Republican sweep in the U.S. mid-term elections sparked risk-taking in U.S. equities and oil, as the party is generally known to be business-friendly and are notoriously opposed to the Fed’s QE. It also didn’t help the Greenback that Uncle Sam’s ISM services PMI grew at its slowest pace in four months.

This is probably why EUR/USD and GBP/USD halted their selloffs at the 1.2475 and 1.5920 levels, with the latter ending the day 108 pips higher than its intraday low. USD/JPY also encountered resistance at 114.75 while USD/CHF ranged tightly just below the .9650 area.

Unlike its European counterparts, major comdoll pairs showed mixed price action against the dollar. AUD/USD slipped by another 16 pips to .8594 while NZD/USD made new intraday lows at .7685 before closing at .7736.

The Loonie had a good day though, thanks to a slight recovery in oil prices. USD/CAD dipped by 32 pips throughout the session, with most of the move seen after the disappointing U.S. ISM non-manufacturing PMI was released.

Let’s see if comdoll bulls will hustle some muscle today. Australia has just released positive employment numbers, but so far AUD/USD hasn’t bounced from its U.S. session lows.

The only other report scheduled during the Asian forex trading session is Japan’s leading indicators report at 5:00 am GMT. The report doesn’t usually cause sustained moves on the yen crosses, but watch out for surprises in case traders use data hits or misses as catalysts to either extend or take profit from the yen’s losses.

Good luck and good trading!

See also:

London Session Recap

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