- US consumer confidence: 95.2 vs. 102.2 expected, 101.3 previous
- US Richmond Fed manufacturing index: -3 vs. -2 expected, -8 previous
- US Case-Schiller house price index: 5.03% vs. 4.70% expected, 4.48% previous
- NZ trade balance shows strong-than-expected numbers
- Japan on Showa Day bank holiday
Dollar weakness was the name of the game during the U.S. session, as forex traders square off their long dollar positions ahead of the FOMC statement.
Yesterday’s data from Uncle Sam showed consumer confidence at 95.2 when analysts had expected a 102.2 reading from last month’s 101.3 figure. Meanwhile, market players mostly shrugged off a better-than-expected US Case-Schiller report.
These reports don’t usually cause big Greenback movements but, unfortunately for the dollar, it added to the string of disappointing economic reports that supports a later rate hike for the Fed this year. This is probably why the dollar slipped against its fellow low-yielding counterparts with USD/JPY inching 9 pips lower (-0.08%) to 118.87 while USD/CHF ended the session with a 4-pip move lower to .9561 (-0.04%).
European currencies extended their London session strength and continued to clock in gains against the Greenback. For instance, there were no major Greek-related headlines throughout the session but EUR/USD still climbed by 31 pips (+0.28%) to 1.0974 while GBP/USD also popped up by 37 pips (+0.24%) to 1.5326 despite a disappointing UK GDP reading.
The dollar also lost to the comdolls, thanks to higher gold and oil prices piling on top of Australia’s stronger-than-expected CB leading index report. AUD/USD rocketed by 64 pips (+0.81%) to .8015 while USD/CAD dropped by 30 pips (-0.25%) to 1.2030. Heck, even NZD/USD rose by 30 pips (+0.39%) to .7721!
Will Asian session forex traders support a dollar selloff theme today? New Zealand started the day on the right side of the bulls with a better-than-expected trade balance data. The report showed a 631M NZD trade surplus, higher than the 315M NZD figure that analysts were expecting. So far the Kiwi has actually gone DOWN across the board, but keep an eye out in case the bulls wake up and turn the comdoll’s price action around.
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!