U.S. Session Forex Recap – August 18, 2015

  • US Empire State mfg index: -14.92 vs. 4.50 expected, 3.86 previous
  • US NAHB house price index remains at 61 as expected vs. 60 previous
  • US net long-term TIC flows: 103.1B s. 23.0B expected, 93.0B previous
  • CA foreign securities purchases: 8.51B vs. -5.95B expected, -5.46B previous
  • RBA monetary policy meeting minutes, AU new motor vehicle sales on tap

Ho-hum. With no major reports released yesterday, forex traders found it easy to get on with their summer vacations.

The biggest news during the U.S. session was the release of New York’s manufacturing PMI, which fell to its lowest reading since 2009. A closer look at the report reveals new orders and shipments declining while the employment component remained flat. 34% of the respondents said that conditions had worsened against the 19% who signalled improvement.

The dollar lost a couple of pips at the release, though the bulls were quick to pick up the slack. After all, at the end of the day the Fed is still the closest in the race to tighten its policies.

EUR/USD hit a high of 1.1125 before capping the day back to 1.1081 while GBP/USD popped up to 1.5641 before dropping by 39 pips (-0.25%) throughout the session. USD/JPY also slipped to a session low of 124.22 before closing at 124.39 while USD/CHF inched 7 pips (+0.07%) to .9768.

The comdolls weren’t as indecisive. The Aussie, Loonie, and Kiwi all gained against the Greenback, probably due to a slight recovery in gold prices and a bit of profit-taking from last week’s selloff. It also didn’t hurt that 10-year Treasury yields dropped by 3 basis points to 1.59% and weighed a bit on dollar demand.

AUD/USD popped up by 21pips (+0.29%) to .7376, NZD/USD jumped by 13 pips (+0.20%) to .6569, and USD/CAD fell by a whopping 61 pips (-0.46%) to 1.3084 despite oil prices declining further and getting closer to its 6-year lows.

Let’s see if Asian session forex traders extend the comdolls’ strength today. The Reserve Bank of Australia (RBA) is set to release its monetary policy meeting minutes at 1:30 am GMT together with Australia’s new motor vehicle sales report.

If you recall, the RBA did not make any changes to its policies though it had stressed its preference for a lower local currency. If the central bank repeats its jawboning today, then we might see a bit of Aussie weakness over the next couple of hours. Best keep close tabs on your comdoll trades during the report’s release!

See also:

London Session Recap

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