U.S. Session Forex Recap – September 2, 2015

  • US final manufacturing PMI: 53.0 vs. 52.9 expected and previous
  • US construction spending: 0.7% vs. 0.6% expected, 0.7% previous
  • US ISM manufacturing PMI: 51.1 vs. 52.5 expected, 52.7 previous
  • US IBD consumer optimism: 42.0 vs. 47.1 expected, 46.9 previous
  • CA monthly GDP: 0.5% vs. 0.2% expected, -0.2% previous
  • CA quarterly GDP: -0.5% vs. -1.0% expected, -0.8% previous
  • Australia’s GDP numbers on tap

Forex price action was a mixed bag of nuts, as last week’s risk aversion came back to the markets with a vengeance.

The biggest story of the hour was risk aversion once again taking hold in the markets. While China’s latest PMI reports are nothing to write home about, the slight misses were enough to spark another wave of selloff among high-yielding currencies.

NotThe biggest story of the hour was risk aversion once again taking hold in the markets. While China’s latest PMI reports are nothing to write home about, the slight misses were enough to spark another wave of selloff among high-yielding currencies.

Not surprisingly, the commodity-related currencies were among those who were hit the most. After all, concerns over China’s growth usually translate to concerns over exports of commodity-producing countries.

AUD/USD sank by 33 pips (-0.47%) to .7021 while AUD/JPY lost 67 pips (-0.79%) to 84.06. NZD/USD, supported by a relatively strong dairy auction, remained at the .6350 area.

The Loonie also got some attention after Canada’s quarterly GDP report officially put the economy in recession. It also didn’t help that Brent crude oil fell by another $4.59 (-8.5%) to $49.56 while WTI crude oil dropped by more than 10% to $44.25 per barrel. Yikes!

USD/CAD zoomed 18 pips higher (+0.14%) to 1.3221 after hitting an intraday low of 1.3210 while CAD/JPY fell by 40 pips (-0.44%) to 90.55 and EUR/CAD popped up by 85 pips (+0.57%) to 1.4938.

The Greenback wasn’t all rainbows and unicorns either. If you recall, concerns over China a few days back led to dollar-selling, as it was believed that it could affect the timing of the Fed’s rate hike. Heck, some analysts even adjusted their rate hike schedules from September this year to early 2016!

EUR/USD rose by 51 pips (+0.45%) to 1.1300 while USD/JPY edged 38 pips lower (-0.32%) to 119.72 and USD/CHF fell by 30 pips (-0.31%) to .9603.

See also:

London Session Recap

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