Article Highlights

  • CA manufacturing sales: -1.7% vs. -1.2% expected, 1.60% previous
  • US building permits: 1.09M vs. 1.07M expected, 1.06M previous
  • US housing starts: 0.9M vs. 1.04M expected, 1.08M previous
  • Fonterra Global Dairy Trade index falls by 8.8% in yesterday’s auction
  • Japan trade balance report on tap
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Ho-hum. Forex price action was as exciting as watching water boil, as investors traded cautiously ahead of today’s major reports.

USD bulls were noticeably less aggressive ahead of the FOMC statement. USD/JPY remained in a tight range below 121.50 while GBP/USD stayed tight near the 1.4760 area. Meanwhile, EUR/USD hit an intraday high of 1.0651 before settling 27 pips (+0.25%) higher than its session open price on positive euro zone reports during the London session.

The comdolls had a more interesting trading session. The Kiwi fell across the board after Fonterra’s dairy auction saw an 8.8% decline in prices, its first decline in 2015. Analysts point to the latest milk formula scare as the reason for the price decline.

NZD/USD fell by 57 pips (-0.77%) to .7311 while NZD/JPY saw a 58-pip decline (-0.65%) to 88.72.

The Aussie didn’t fare much better either. Thanks to the RBA minutes hinting just how possible a rate cut is, AUD/USD dropped by 34 pips (-0.44%) to .7618, EUR/AUD shot up by 30 pips (+0.22%) to 1.3901, and AUD/JPY slipped by 34 pips (-0.37%) to 92.44.

Asian session forex traders only have Australia’s MI leading index report and Japan’s trade balance numbers to price in over the next couple of hours. Both reports have printed better than markets had expected, but have not significantly affected their respective currencies yet. Will this mean more tight ranges until the start of London session trading?

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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