U.S. Session Forex Recap – Mar. 3, 2015

  • CA current account: -13.9 billion CAD vs. -12.5 billion CAD expected, -9.6 billion CAD previous
  • US ISM manufacturing PMI: 52.9 vs. 53.09 expected, 53.5 previous
  • US manufacturing PMI: 55.1 vs. 54.3 expected, 54.3 previous
  • US personal spending: -0.2% vs. -0.1% expected, -0.3% previous
  • US personal income: 0.3% vs. 0.4% expected, 0.3% previous
  • ONS lowers Q3 2014 UK GDP from 2.9% to 2.6%
  • AU data dump, RBA’s interests rate decision on tap

The Greenback dominated the forex scene during the U.S. session despite a slew of weaker-than-expected U.S. data. What’s up with that?!

Yesterday we saw the U.S. manufacturing, ISM manufacturing, personal income, and personal spending numbers all come below market expectations. Taken together, the reports could have supported claims that the Fed is in no hurry to raise its rates.

Strangely enough, the dollar still managed to gain pips against its major counterparts. One possible reason is squaring of long high-yielding currency bets before this week’s major reports. Then again, the dollar could have been pulled higher by yesterday’s strong U.S. equities performance.

NASDAQ closed above 5,000 points for the first time since 2000, while S&P 500 shot up 13 points to 2,117 and the DJIA closed at its record high of 18,288. Yowza!

With no news from the European region during the U.S. session, EUR/USD easily fell from its 1.1240 intraday high to close at 1.1182. GBP/USD, which was still hurting from weak U.K. housing data, lost another 17 pips (-0.11%) to 1.5365. Not only that, but USD/JPY jumped by 39 pips to 120.16.

The comdolls also lost pips to the dollar, especially after oil prices failed to maintain its intraday gains and gold slipped by $6 to $1,207.

AUD/USD gave up 9 pips (-0.12%) to .7768 ahead of the RBA interest rate decision, while USD/CAD rose by 34 pips (+0.27%) to 1.2535 and NZD/USD slipped by 20 pips (-0.27%) to .7510.

Today’s another big day for the comdolls with Australia scheduled to release its current account (expected to show 11 billion AUD deficit) and building approvals data (expected to fall by 1.8%) at 1:30 am GMT.

The bigger fish to fry for Asian session forex traders is the RBA’s monetary policy decision at 3:30 am GMT. Some market players are expecting the central bank to follow the BOC’s footsteps and announce a rate cut, while others say that the RBA would only print dovish sentiments today. With expectations as mixed as a bag of nuts, make sure you stick around and watch for any volatility that might come after the RBA’s decision!

See also:

London Session Recap

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