U.S. Session Forex Recap – Mar. 31, 2015

  • US core PCE: 0.1% as expected and previous
  • US personal spending: 0.1% vs. 0.3% expected, -0.2% previous
  • US personal income: 0.4% vs. 0.3% expected, 0.4% previous
  • US pending home sales: 3.1% vs. 0.4% expected, 1.2% previous
  • CA raw materials price index: 6.1% vs. 4.5% expected, -7.8% previous
  • NZ building permits: -6.3% vs. -4.6% previous
  • AU HIA new home sales: 1.1% vs. 1.8% previous
  • NZ ANZ business confidence: 35.8 vs. 34.4 previous
  • Japan average cash earnings, housing starts on tap

It was another good day for the dollar, as end-of-quarter forex flows and economic data pushed the low-yielding currency higher.

There were no tier 1 reports from both the U.S. yesterday, so traders point to end-of-quarter flows as the reason for the Greenback’s overall strength. Analysts emphasized the strong performance of non-U.S. markets, which could attract dollar inflows when liquidated.

Uncle Sam’s lower tier results might have also helped. Though personal spending missed its expectations, the pending home sales report showed a 3.1% growth when market players had only expected a 0.4% uptick.

This is probably why the dollar extended its London session strength. USD/JPY inched up by another 19 pips (+0.16%) to 120.08 while USD/CHF also rose by 36 pips (+0.37%) to .9670.

Even the comdolls were affected by the dollar’s strength. As I mentioned in my London session update, the sharp decline in iron ore prices affected the Aussie’s strength while weaknesses in other commodities as well as overall risk aversion helped pull the other comdolls down the charts.

AUD/USD managed to float near its .7650 intraday lows but USD/CAD shot up by another 26 pips (+0.21%) to 1.2676. Meanwhile, NZD/USD slipped by 14 pips (-0.19%) to .7500.

Let’s see if today is another bloody day for commodity-related currencies. A couple of hours ago Australia had printed a slightly worse-than-previous HIA new home sales data, which was followed by a disappointing New Zealand’s building permits report and a better-than-expected business confidence release. These reports don’t usually cause sustained moves for their respective currencies, so keep a closer eye on commodity price movements.

If you’re not into comdolls though, then you can also trade yen pairs. Japan is set to print its average cash earnings at 1:30 am GMT (0.7% expected vs. 1.3% previous) and its housing starts data at 5:00 am GMT (expected to decline by 7% vs. -13% last month).

Good luck and good trading!

See also:

London Session Recap

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