U.S. Session Recap – December 13, 2013

  • US retail sales grows at its fastest pace in 5 months
  • US initial jobless claims at 368K vs. 321K expected
  • RBA Governor Stevens wants AUDUSD closer to .8500

Can you say dollar domination? Thanks to a positive retail sales report, the Greenback clobbered most of its higher-yielding counterparts. USD/JPY is now a few pips away from its yearly highs while EUR/USD and GBP/USD encountered losses.

Yesterday the retail sales report exceeded expectations with a 0.7% headline number (vs. 0.6% expected) and a 0.4% core growth figure (vs. 0.2% expected). Not only that, but October’s numbers were also revised higher! Not surprisingly, the reports supported a near-term tapering by the Fed, which boosted the Greenback across the board.

RBA Governor Glenn Stevens also made the newswires when he said that AUD/USD needs to be near .8500 instead of its current levels (around .8900) in order to spur growth. Talk about verbal intervention! The speech worked as the currency pair tumbled convincingly below .9000.

We don’t have a major report on deck except Japan’s revised industrial production numbers at 5:30 am GMT, so you might want to watch the Asian markets closely to see if they will follow the U.S. session’s direction.

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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