- US factory orders: 2.1% vs. 2.0% expected, -0.1% previous
- Japanese markets out on Children’s Day holiday
- Australia’s trade balance, RBA’s policy decision due today
Thanks to the U.K.’s May Day holiday and low-tier reports scheduled from the U.S., forex price action was as eventful as last weekend’s “Fight of the Century.”
The dollar ranged tightly against its counterparts even though Uncle Sam’s factory orders shot up by 2.1% after slipping by 01% in March. Some analysts are also saying that traders are hesitant to put on positions ahead of this week’s major reports.
USD/JPY stayed just above 120.00 and closed at 120.08 while USD/CHF also lollygagged below .9350 and capped the session with a 21-pip loss (-0.22%) to .9336.
The euro managed to recover from its intraday lows seen during the London session. If you recall, PMI revisions from the euro zone showed mixed adjustments.
EUR/USD popped up to 1.1190 before settling with a 19-pip gain (+0.17%) to 1.1153 while EUR/JPY hit a session high of 134.41 before closing with a 5-pip gain (+0.04%) to 133.93.
Comdoll traders weren’t as indecisive about where they wanted to go. The Aussie, Loonie, and Kiwi all gained pips on the Greenback throughout the session, partly due to higher commodity prices.
AUD/USD inched 15 pips higher (+0.19%) to .7846 while USD/CAD slipped by 38 pips (-0.31%) to 1.2092.
Will Aussie traders continue to push the comdoll higher today? It’s a big day for Asian session forex traders with Australia’s trade balance scheduled at 2:30 am GMT, followed by the RBA’s monetary policy decision at 5:30 am GMT.
Market players are expecting a trade deficit of 1 billion AUD after clocking in a 1.26 billion AUD deficit last month. Meanwhile, the RBA is widely expected to release dovish statements if not cut its interest rates all together. If you remember, last month the Aussie rallied when the central bank decided to wait for more data instead of implementing new accommodative policies.
Australia’s heavy hitters are the only ones scheduled until the London session open, so make sure you pay attention to their impact on risk-taking and forex price action!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!