U.S. Session Forex Recap – Dec. 10, 2014

  • UK NIESR GDP estimate at 0.7% vs. 0.7% previous reading
  • US JOLTS job openings clocks in at 4.83M vs. 4.81M expected, 4.69M previous
  • US wholesale inventories up by 0.4% vs. 0.1% expected, 0.4% previous
  • AU Westpac consumer sentiment and Chinese CPI numbers due

Risk sentiment reigned supreme during the U.S. forex trading session and pushed the major currencies all over the place. So which currencies ended the day in the green?

The Japanese yen was the best performer of the day as risk aversion took place on the back of China’s new bond restrictions and political uncertainty in Athens.

USD/JPY ended the session 9 pips lower at 119.61 after hitting an intraday low of 117.95. EUR/JPY also saw a downward spike to 146.82 before closing at 147.98 while GBP/JPY hit a bottom of 185.22 before closing at 187.40 and AUD/JPY reached 98.58 before capping the day at 99.26.

The dollar also saw some action thanks to risk aversion boosting gold prices and dragging U.S. equities, which resulted to a weaker Greenback. It also didn’t help that traders who were looking to take profits from their long dollar trades stepped up as soon as the move gained momentum.

USD started the session on the red side of the charts with EUR/USD popping up to an intraday high of 1.2447, GBP/USD hitting 1.5717, and USD/CHF falling to a low of .9654.

It seemed like dollar bulls had a good lunch though, as they pared of some of the Greenback’s losses in the second half of the session. EUR/USD ended the session with a 2-pip dip to 1.2372 while GBP/USD only inched 12 pips higher to 1.5667 and USD/CHF popped up to its .9717 closing price.

Comdoll bulls were also in on the dollar-selling party as AUD/USD popped up to a high of .8371 before settling down to .8298. Ditto for NZD/USD, which hit an intraday high of .7762 before closing at .7681. USD/CAD, which also traded on a slight recovery in oil prices, dipped to a low of 1.1397 before closing at 1.1439.

Will we see more risk aversion today? Australia has printed mixed numbers with its Westpac consumer sentiment coming in weaker-than-expected while its home loans data grew by 0.3% after slipping by 0.4%.

China’s inflation numbers might be the bigger headline though. Analysts are expecting consumer prices in China to rise by an annualized growth of 1.6%, but a significantly lower reading could fuel speculations of a slowdown in one of the biggest economies in the world and further fuel risk aversion. No pressure though.

Watch your trades closely, folks!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some 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!