U.S. Session Forex Recap – September 1, 2015

  • US Chicago PMI: 54.4 vs. 54.5 expected and previous
  • CA current account: -17.4B CAD vs. -16.9B CAD expected, -18.1B CAD previous
  • AU AIG manufacturing index: 51.7 vs. 50.4 previous
  • China’s manufacturing PMI numbers on tap
  • AU to release building approvals and current account
  • RBA to keep rates unchanged at 2.00%?

Forex traders were deep in Chopsville during the U.S. session, thanks to month-end flows and a lack of major news reports to price in.

The NFP week started on a choppy note, as the absence of London traders and tier 1 reports inspired end-of-month profit-taking ahead of today’s major releases.

The Greenback found no love against it’s the yen and the comdolls. One likely reason is renewed concerns over China’s growth affecting the Fed’s interest rate hike schedule. Then again, the comdolls might have also rallied following the strong performance of gold and oil prices yesterday.

Brent crude oil rocketed by $4.01 (+8.0%) to $54.06 per barrel while U.S. crude oil rose by $3.98 (+8.8%) to $49.20 on reports that OPEC would talk with other oil producers about the decline in oil prices. It might have also helped that U.S. oil production numbers showed falling output. Meanwhile, gold rose by 2.7% to $1,136 per troy ounce.

USD/JPY slipped by 9 pips (-0.07%) to 121.23 throughout the session while AUD/USD popped up by 9 pips (+0.13%) to .7117 after falling to an intraday low of .7113. USD/CAD was a bigger mover with its 88-pip decline (-0.66%) to 1.3157 after hitting an intraday high of 1.3327.

The European currencies weren’t as lucky against the Greenback. Thanks in part to the absence of London traders, EUR/USD ended the day with only a 12-pip gain (+0.11%) to 1.1220 while GBP/USD fell by another 63 pips (-0.41%) to 1.5345.

Will we see clearer trends for the major currencies today? Asian session forex traders have a lot on their plate with China and Australia releasing tier 1 and tier 2 reports. China’s data would probably have more bearing, as they’re manufacturing related and could affect demand for its exports. Heck, today’s numbers could even affect worries that China’s economy is on a hard landing phase! Here are reports you need to watch:

AU AIG manufacturing PMI at 12:30 am GMT (previously at 50.4)
China’s manufacturing PMI at 1:00 am GMT (expected at 49.7 vs. 50.0 previous)
AU building approvals at 1:30 am GMT (expected at 3.0% vs. -8.2% previous)
AU current account at 1:30 am GMT (expected at -15.9B AUD vs. -10.7B AUD previous)
China’s Caixin manufacturing PMI at 1:45 am GMT (expected at 47.1 like last month)
RBA’s interest rate decision at 4:30 am GMT (no changes expected)

Read Forex Gump’s 5 catalysts for AUD’s price action if you want to know more about their impact on the Australiand dollar. Good luck and good trading!

See also:

London Session Recap

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