- US ADP report: 190K vs. 200K expected, 177K previous
- US non-farm productivity: 3.3% vs. 2.9% expected, 1.3% previous
- US factory orders: 0.4% vs. 0.9% expected, 2.2% previous
- US Beige Book report shows economy expanding across most regions
- EIA crude oil inventories: 4667K vs. 444K previous
- Chinese markets out on Victory Day holiday
The dollar’s price action was mixed, thanks to a see-saw in forex risk sentiment and a couple of U.S. reports. How did the major currencies behave during the U.S. session?
There was barely any tier 1 reports yesterday, so forex traders were all over the place. The Greenback gained pips on the euro, Loonie, and the low-yielding currencies, but lost to the other comdolls and the pound.
A bit of profit-taking might have something to do with the forex price action. With China’s markets scheduled to tap out to celebrate World War II Remembrance Holiday, those who sold high-yielding currencies might have taken profits. Of course, they could have also squared their positions ahead of the ECB’s monetary policy decision today and tomorrow’s NFP report.
Uncle Sam’s mixed reports didn’t help dollar traders decide on a direction either. Factory orders might have clocked in a second consecutive gain, but its 0.4% uptick still missed the 0.9% growth that market players had been expecting.
The ADP report also slightly missed estimates with a 190K reading, and hinted that we won’t see any fireworks from tomorrow’s NFP release. Lastly, the Beige Book report, which reflected growth across most regions.
EUR/USD fell by 39 pips (-0.35%) to 1.1227 while USD/JPY jumped by 17 pips (+0.14%) to 120.29 and USD/CHF popped up by 49 pips (+0.51%) to .9698. USD/CAD, which got a boost from a strong oil supply reading from the U.S., took an 11-pip hike (+0.08%) to 1.3272 after hitting an intraday high of 1.3324.
The Greenback wasn’t as lucky against the high-yielders. GBP/USD, likely still pricing in a slight uptick in the construction PMI, inched 25 pips higher (+0.16%) to 1.5303. AUD/USD also shrugged off lower gold prices and gained 34 pips (+0.49%) to .7040 while NZD/USD also popped up by 11 pips (+0.17%) to .6345.
Let’s see if today’s Asian session forex traders are in the mood to buy or sell the Greenback. Though China’s markets are closed today, the Land Down Under is slated to release its quarterly GDP numbers at 1:30 am GMT. Market players are expecting 0.4% growth from the previous quarter’s 0.9% uptick, but keep your eyes peeled in case we see any significant misses! Better yet, head on over to Forex Gump’s writeup on the report and see how it can affect your AUD trades.
Good luck and good trading!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!