Article Highlights

  • Canadian markets out on Civic Day holiday
  • US equities, Treasury yields recover some of last Friday’s losses
  • AU AIG services PMI: 49.3 vs. 47.6 previous
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With Canadian traders celebrating Civic Day holiday and the U.S. not printing any major reports, the currency bulls and bears took chill pills during the U.S. forex trading session and inspired tight ranges among major forex pairs.

One of the biggest movers was the pound, which continued to find support from a better-than-expected UK construction PMI report. GBP/USD shot up by another 25 pips to 1.6858 throughout the session while GBP/JPY jumped by 17 pips to 172.90 and EUR/GBP fell by another 10 pips to .7962.

The Aussie also received a boost ahead of the RBA’s monetary policy statement. Expectations of hawkish or at least less dovish statements brought AUD/USD 19 pips higher at .9335, AUD/JPY 15 pips higher at 95.75, and EUR/AUD lower by 28 pips at 1.4378.

Will the comdoll get more support from the Asian session traders? At 1:30 am GMT Australia will release its trade balance data for June. Analysts expect the trade deficit to widen to 2.0 billion AUD from last month’s 1.9 billion AUD figure, but watch out for upside surprises that could push the Aussie higher. China will also print its HSBC services PMI at 1:45 am GMT but unless we see a huge divergence from last month’s 53.1 reading, we probably won’t see much impact on the comdolls.

At 4:30 am GMT it’s the RBA’s turn to possibly affect the markets. While market players don’t expect the central bank to change its “extended period of stability” rhetoric, they are watching closely to see if RBA Governor Stevens and his gang would stop jawboning the currency.

Good luck and good trading, folks!

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