U.S. Session Forex Recap – Oct. 14, 2015

  • RBNZ’s Wheeler: “further easing seems likely.”
  • AU Westpac consumer confidence report prints stronger-than-expected
  • China’s inflation numbers due today

Forex price action was a mixed bag of beans, as the lack of tier 1 reports left direction up to risk sentiment and individual currency stories.

Uncle Sam didn’t print any major numbers yesterday but two Fed officials helped spur volatility. For starters, St. Louis Fed President James Bullard revealed that he was one of those who opposed holding off a rate hike in September. However, he also warned that the additional data between then and their meeting in two weeks will unlikely push the Fed to a rate hike. FOMC voter Daniel Tarullo also spoke up, this time saying that the Fed shouldn’t hike its rates this year. Talk about giving mixed signals!

The dovish tones were probably why the Greenback lost against the majors with EUR/USD inching 10 pips higher (+0.09%) to 1.1385 while GBP/USD, which took a hit in early London trading, recovered by 24 pips (+0.16%) to 1.5262.

Even the low-yielding currencies gained pips on the dollar with USD/JPY lollygagging just above 119.50 and USD/CHF sliding by 25 pips (-0.26%) to .9569.

The comdolls weren’t as lucky as the other major currencies. You see, though China printed a better-than-expected trade balance report, a closer look at the component reveals that BOTH exports and imports actually fell with the latter plummeting by an annualized rate of 20.4% last month. As I mentioned yesterday, this isn’t good news for economies like Australia and New Zealand which rely heavily on their exports to China.

AUD/USD fell by 30 pips (-0.41%) to .7265 while NZD/USD closed 28 pips lower (-0.42%) than its session open price.

Last but not the least is the Loonie, which was all over the place thanks to volatile intraday moves in oil prices. The black gold saw an intraday gain of about $1.43 before capping the day $0.50 lower than its open price. Yikes!

USD/CAD popped up to an intraday high of 1.3080 before closing with a 31 -pip loss (-0.24%) t0 1.3019 while CAD/JPY also shot up to 92.50 before closing at 91.98.

Let’s see if the comdolls can get back some of their pips today. Japan has already released its PPI numbers and Australia has printed its Westpac consumer sentiment but so far we haven’t seen significant reaction from the Asian currencies. Is it because forex traders are waiting for China’s CPI release? Market players are expecting consumer prices to slow down to 1.8% from its 2.0% figure last month. A disappointing print could further weigh on the comdolls, so you better stick around and watch your charts closely!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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