U.S. Session Forex Recap – Mar. 4, 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

Thanks to a lack of major catalysts, forex price action was a mixed bag of nuts during the U.S. trading session.

The dollar lost pips to most of its counterparts after performing strongly yesterday. One possible explanation is that traders have taken profits from their long dollar trades yesterday. USD/JPY slipped by 9 pips (-0.08%) to 119.69 after hitting an intraday low of 119.38 while USD/CHF fell to a low of .9575 before closing at its session open price.

The European currencies weren’t as lucky though. Euro and pound bears attacked during the session despite the release of better-than-expected reports from the euro zone and the U.K. in the earlier trading session.

EUR/USD lost momentum and visited intraday highs and lows at 1.1115 and 1.1218 respectively before closing at 1.1176. GBP/USD also experienced a similar whipsaw with its trek to 1.5345 and 1.5394 before closing at 1.5367.

Another notable move came from the comdolls, with the Aussie still feeling the love from the RBA’s non-rate cut during the Asian session; the Loonie finding support from Canada’s better-than-expected GDP numbers, and the Kiwi gaining pips from Fonterra’s upgrade in dairy prices.

AUD/USD rose to an intraday high of .7844 before settling back down to .7820 as NZD/USD inched to a high of .7574 before closing at .7546.

Canada’s annualized growth for Q4 2014 registered at 2.4% when analysts had only been expecting a 2.0% growth. Not only that, but Q3 2014’s growth was also revised higher from 2.8% to 3.2%. A closer look at the report reveals that higher consumer spending and business inventories contributed the most to the GDP increase.

USD/CAD lost 24 pips (0.19%) to 1.2489 after hitting a session low of 1.2433 and CAD/JPY popped up by 11 pips (+0.12%) to 95.84.

Will we see more comdoll gains today? It’s Australia’s turn to print its GDP report at 12:30 am GMT, followed by China releasing its HSBC services PMI report at 1:45 am GMT. Market players are expecting a 0.6% quarterly growth from Q3 3014’s 0.3% uptick and a 2.5% annualized growth from a 2.7% previous reading. Significant upside surprises could extend the Aussie’s rally across the board, so make sure you don’t miss the data releases!

See also:

London Session Recap

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