U.S. Session Forex Recap – Mar. 24, 2016

  • U.S. New Home Sales (Feb) comes inline with expectations at 512K units, above the revised January number of 502K units
  • Energy Information Administration (EIA) reports of a 9.4m jump last week to a record 532.5m
  • New Zealand Balance comes in positive at N$339M vs. N$90M forecast and N$8M previous

Another round of Greenback gains thanks to fresh U.S. housing data and unfavorable inventories data for oil bulls in the U.S. forex session.

Major Events:

U.S. economic data improves – Another day, another U.S. housing report, and it was a slightly positive take on the housing market with the February new home sales number coming in above the previous month at 512K units as expected. It looks like traders took it as a cue to buy up the Greenback during the release (U.S. dollar index futures broke above 96.00 on the release), probably as it does take off pressure that the horrible existing home sales from Monday may have brought.

Crude oil down! – The EIA burst the bubble of oil bulls everywhere today with the latest inventory read showing a big jump in crude stockpiles by over 9 million barrels. With supply hitting record numbers, it’s no surprise we saw oil prices take a dip as WTI crude futures dipped back below $40 in the Wednesday Asia session, and the Canadian dollar falling against the Greenback in Tuesday trade.

New Zealand Trade Balance improves – We just got the February read on New Zealand’s trade balance, showing a surplus of N$339M as exports report N$4.25B over imports at N$3.91B. This positive read was likely helped by dairy (Kiwi’s largest export), which increased by 9.2% year-over-year, and an overall increase to its largest trading partner, China, by 1.6%.

Major Currency Movers:

USD – While this week’s Dollar momentum seems to be slowing down, the Greenback managed to make gains against the majors overall in Tuesday trade, with the U.S. dollar index futures breaking the 96.00 handle and hitting a high around 96.24 before falling back.

The biggest loser against the Greenback on the session was the Aussie with AUD/USD dropping from an Asia high around .7648 to a low of .7520, a 1.67% swing. Kiwi also took a tumble from its Asia session high around .6769 to high a low of .6682, or a -1.28% swing peak-to-trough.

CAD – The Loonie obviously gave up a bit of ground with the jump in crude oil inventories. Several Loonie pairs made new highs for the week, including USD/CAD trading above the 1.3200 handle at the end of Tuesday trade from a an Asia low around 1.3036 (+1.28%), EUR/CAD moving from a low 1.4606 to a high 1.4782 (+1.20%), and CAD/JPY dropping form session high 86.29 to finally finding support at 85.00 (-1.49%).

See also:

Asian Session Recap

London Session Recap

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