- US JOLTS job openings at 3.97M vs. 4.02M expected
- US wholesale inventories at 0.6% vs. 0.4% estimates
- NIESR UK GDP estimate at 0.8% vs. 0.7% previous
- Weak US equities reflected in risk aversion in currencies
The major currencies were in Chopsville yesterday as traders failed to gain momentum on either side. Mixed reports from Germany and the U.K. inspired a bit of risk appetite early in the trading session with EUR/USD, GBP/USD, and USD/JPY showing dollar weakness to the tune of 50 pips.
The positive vibes soon petered out, however, when no major data was printed and the U.S. stock indices and commodities like oil and copper became vulnerable to profit-taking.
The comdolls weren’t as lucky as the European currencies. Thanks to fresh concerns over a bond default in China and falling commodity prices, the commodity-related dollars weakened against the Greenback. AUD/USD broke its 30-pip consolidation and fell below .9000 while USD/CAD shot up from 1.1070 to the 1.1120 area. Even NZD/USD took a 50-pip hit after reaching a resistance at .8500.
Will we see more comdoll weakness today? Australia’s Westpac consumer confidence is the only major report on tap during the session but that doesn’t mean that you shouldn’t keep your eyes peeled for sentiment-changing news from Japan or China!
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!