Article Highlights

  • Australia’s trade deficit at 0.93B AUD vs. estimated 1.58B AUD shortfall
  • Chinese HSBC services PMI up from 53.0 to 53.4 in Dec
  • Nikkei down 2.81% for the day
  • New Zealand dairy auction scheduled today
  • U.K. services PMI to improve from 58.6 to 58.9?
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Looks like dollar bulls are taking a break! The U.S. currency returned some of its recent wins to its forex counterparts, as traders are probably booking profits ahead of the release of the FOMC minutes later this week. EUR/USD is up 0.20% to the 1.1950 minor psychological mark and GBP/USD is holding on to a 0.10% gain so far.

One of the biggest movers in the past few hours was USD/JPY, which is looking at a 0.58% loss as the Nikkei slumped close to 3% for the day. Risk aversion weighed on Asian equities today, as talks of a Greek euro zone exit and another potential fall in prices for New Zealand’s dairy auction filled the newswires.

Meanwhile, the Australian dollar got a couple of good reports, with a stronger than expected trade balance from the Land Down Under and an improvement in China’s HSBC services PMI from 53.0 to 53.4 in December. AUD/USD is up 0.74%, AUD/JPY is up 0.20%, and EUR/AUD is down 0.49%.

Up ahead, the forex calendar shows that the U.K. services PMI is up for release and might show an improvement from 58.6 to 58.9. Stronger than expected data could lead to more gains for the pound, as the services sector contributes a huge chunk to overall economic growth. Also lined up for today are services PMI readings from Spain and Italy, although updates regarding the Greek political situation are more likely to push euro pairs around.

U.S. Session Recap

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

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!