Daily Economic Roundup – August 12, 2009

United States

Dollar buying against the European currencies and the yen took a break, as the dollar fell against all those currencies in trading yesterday. Interestingly however, the dollar gained against com-dolls. Over the past couple of days, there was speculation that the AUD and NZD were resilient through the recent dollar rally because of their higher yields… then this happens. More…

Euro zone

The big dog of all currency pairs, the EURUSD, was quite a bore yesterday as it just drifted in a tighter than usual 75 pip range. The lack of any meaningful economic data also was a prime factor in keeping any volatility at bay. With the FOMC interest rate decision and euro-zone preliminary GDP coming up, we may see the pair continue its sideways pattern. More…

Japan

It was a day to remember for the JPY as it rallied against ALL the other majors in yesterday’s trading. Looking at the daily charts of the JPY pairs, JPY’s month long downtrend against the other currencies (except the USD) was finally snapped in yesterday’s action. Will yesterday’s movement mark the start of the JPY’s rise? Or was it just a temporary correction? More…

United Kingdom

GBP/USD’s price movement was boring as it just traded between a 70-pip range throughout yesterday. GBP/JPY, on the other hand, took notice when broke its short term uptrend line. The pair fell by as much as 224 pips as investors shied away from the pound to seek comfort under the JPY. More…

Australia

The Aussie was wiped out yesterday as disappointing economic data from China hinted at weaker demand for Australia’s resources. The AUD/USD slid below the 0.8300 handle while the AUD/JPY dipped to a low of 79.28. More…

Canada

The CAD had quite a beating yesterday as it took blow after blow of disappointing economic reports. Data from China, one of Canada’s major trade partners, showed no mercy as industrial production figures clobbered the CAD. More…

New Zealand

Risk aversion finally took its toll on the NZD yesterday as it fell right through 0.6700 against the USD in yesterday’s trading session. The absence of any economic data also provided little support for the NZD. More…

Switzerland

Quiet day from the Swiss franc, as no economic reports were released. Still, the CHF gained slightly against the USD as the dollar experienced some weakness against European currencies. More…

Pipnoculars: What’s on the Economic Horizon

FOMC Statement To Set the Tone for USD
EURUSD To Consolidate Ahead of GDP and FOMC Statement
GBP: Labor and Inflation Reports On Tap