- RBA Gov Stevens refrains from jawboning AUD in today’s testimony
- US factory orders shows steeper than expected 0.7% drop
- US initial jobless claims better than expected at 323K vs. 336K
- Canadian building permits up by 8.5% vs. 1.9% expected
- Canadian Ivey PMI up from 56.8 to 57.2
And it’s on, fellas! I’m talkin’ about risk appetite yo! Data released during the US session came in mostly better than expected while concerns about a full-blown war in Ukraine continued to ease. The US reported a better than expected initial jobless claims figure, lower compared to the estimated 336K reading, but its factory orders report showed a steeper than projected decline of 0.7% instead of the expected 0.4% drop. Over in Canada, building permits chalked up a whopping 8.5% increase and outpaced the estimated 1.9% rebound while the Ivey PMI improved from 56.8 to 57.2.
Interestingly enough, the US dollar ended lower than most of its major currency rivals despite strong data from the US economy. Could this mean that the dollar is back to trading on risk sentiment again?
Today’s set of US reports could set the tone for dollar trading in the near-term, as Forex Gump discussed in his NFP preview. But before y’all start positioning for the jobs release, don’t forget to take a look at the other reports that could influence price action in today’s Asian session. A few minutes ago, RBA Governor Stevens concluded his testimony, in which he shared his upbeat outlook for the Australian economy. Surprisingly, he didn’t dwell too much on the strength of the Aussie, although he did mention that AUD/USD is still high by historical standards.
No other major reports are lined up for the rest of the Asian trading session, which suggests that risk sentiment might be in the driver’s seat for the next few hours. Good luck and good trading!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!