U.S. Session Forex Recap – Apr. 9, 2015

  • FOMC meeting minutes released; weak Q1 but still potential for rate hike in 2015

The Greenback dominated once again thanks to the FOMC’s March meeting minutes released in the afternoon U.S. forex trading session. The minutes re-iterated sentiment from the March decision and press conference that while there were growth and inflation risks globally (and that the U.S. started 2015 weak) the overall recovery in the U.S. is enough for a potential rate hike this year. Even with no new insights, forex traders quickly took to buying the U.S. dollar after the release, disregarding recent data showing the slowdown in Q1.

EUR/USD was already in an intraday downtrend on weak European data, and the pair spiked lower from 1.0820 to the 1.0770 area where it continues to linger. The London session rally in GBP/USD stalled around 1.4965 and found itself tumbling on the event, falling to around 1.4850. And the USD/JPY continued it’s early morning downside reversal on the event, spiking from 119.80 to 120.30 on the news, pulling back, and climbing once again to test those highs.

Will the Dollar rally continue in the Asia session? We’ll have to wait and see, but until then the focus may likely return to the Australian dollar with the fresh release of AIG construction PMI data a couple of hours ago (50.1 vs. 43.9 previous).  The initial reaction was a bearish one, but it looks like most Aussie pairs have faded the down move and now trading into positive territory early in the Thursday session.

AUD/USD sank as low as .7660 after the release before finding bids and now trading around .7684.  For the rest of the Asia session, we’ll see how traders continue to price the news in to the Aussie, which has been volatile this week thanks to the RBA monetary policy decision on Tuesday.

See also:

London Session Recap

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