U.S. Session Forex Recap – Mar. 11, 2015

  • US JOLTS job openings: 5.00M vs. 5.04M expected, 4.88M previous
  • US wholesale inventories: 0.3% vs. 0.0% expected and previous
  • Risk aversion drives down U.S. equities, commodities, and low-yielding currencies
  • Australia’s home loans, Japan’s core machinery orders, and China’s industrial production numbers on tap

Looks like risk aversion and overall dollar strength dominated the U.S. forex trading session despite a lack of major economic reports. Which currencies were the biggest movers?

The dollar gained pips against most of its counterparts after seeing a bit of profit-taking yesterday. Though Uncle Sam didn’t release any major report, the prospect of a Fed rate hike stood out as other economic regions dealt with bearish reports. Heck, even the yen got a bit of risk aversion action!

USD/JPY encountered found resistance at its London session high and closed at the 120.00 handle at the end of U.S. session trading. Meanwhile, USD/CHF climbed by 37 pips (+0.37%) to .9996 and AUD/JPY closed with a 44-pip decline (-0.47%) to 92.37.

One of the biggest movers is the euro, which continued to fall across the board on speculations that Greece is scrambling to get additional funds to pay its dues at the end of the month. Not only that, but word around the hood that Greece isn’t too excited over inviting European officials to Athens to conduct their audit. Remember that investors want to be assured that officials are cooperating to avoid a Grexit or a Greek debt default.

EUR/USD reached a new weekly low with its 44-pip drop (-0.41%) to 1.0698 while EUR/JPY slid by 65 pips (-0.50%) to 129.58 and EUR/GBP fell by another 34 pips (-0.48%) pips to .7099.

Comdolls like the Aussie, Loonie, and Kiwi also had a tough time gaining pips against their lower-yielding counterparts. The Aussie and Loonie were plagued by setbacks in gold and oil prices, while the Kiwi was weighed by threats of possible contamination of Fonterra’s milk formula.

AUD/USD hit an intraday high of .7683 before doing a 180-degree and plunging by 58 pips (-0.76%) to .7625. Meanwhile, USD/CAD popped up by 56 pips (+0.44%) to 1.2688 and NZD/USD slipped from its .7311 to close 37 pips (-0.51%) to .7274.

Will the comdolls get any love from Asian session forex traders? Australia is set to release its Westpac consumer sentiment data at 11:30 pm GMT, followed by Japan’s core machinery orders numbers at 11:50 pm GMT. Australia’s home loans report will follow at 12:30 am GMT before China prints its industrial production, fixed asset investment, and retail sales numbers at 1:30 am GMT.

These reports don’t usually cause sustained moves among major currencies, but traders could very well use any data hits and misses to either reverse or fuel yesterday’s risk aversion. Keep an eye out for any turns in risk sentiment, aight?

See also:

London Session Recap

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