Article Highlights

  • US headline CPI: 0.3% as expected vs. 0.4% previous
  • US core CPI: 0.2% as expected vs. 0.1% previous
  • US housing starts: 1.17M vs. 1.10M expected, 1.07M previous
  • US building permits: 1.34M vs. 1.15M expected, 1.25M previous
  • US UoM consumer sentiment: 93.3 vs. 96.0 expected, 96.1 previous
  • CA headline CPI: 0.2% as expected vs. 0.6% previous
  • CA core CPI: 0.0% vs. -0.1% expected, 0.4% previous
  • All eyes on NZD, gold declines
  • Japan on Marine Day market holiday today
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Ho-hum. The major currency pairs barely moved from their session open prices, as forex traders turned their focus on commodities.

The decline in gold prices was the biggest story of the hour, as the commodity fell for the 7th straight session to its lowest levels since 2010. Yikes! Word around the hood is that a major market seller, as well as the upside surprise in Uncle Sam’s housing starts numbers and less-than-expected gold reserves from China contributed to the end-of-week bloodbath for gold.

Not surprisingly, the Aussie took hits across the board. Remember that Australia is one of the biggest exporters of the commodity. AUD/USD slipped by 20 pips (-0.27%) to .7382 while AUD/JPY fell by 21 pips (-0.23%) to 91.59.

The Kiwi was also under the spotlight as forex traders positioned themselves ahead of this week’s RBNZ monetary policy decision. Market players believe that the recent decline in commodity and dairy prices, as well as disappointing reports from New Zealand, will prompt the central bank to cut its rates this week.

This is probably why NZD/USD dropped by 29 pips (-0.44%) to .6524 while NZD/JPY saw a 28-pip decline (-0.35%) to 80.99 and AUD/NZD popped up by 18 pips (+0.16%) to 1.1315.

The rest of the major currencies simply gave up pips against the dollar. Thanks to the overall risk aversion theme, EUR/USD fell by 48 pips (-0.44%) to 1.0845, USD/JPY popped up by another 5 pips (+0.04%) to 124.07 and USD/CHF rose by 26 pips (+0.27%) to .9605. GBP/USD was an exception with its climb to 1.5608 after falling to an intraday low of 1.5557.

Asian session traders don’t have a lot on their plate to day with the Japanese market out on Marine Day holiday and China only releasing its new loans numbers. This means forex traders can focus instead on possibly extending or taking profits from last Friday’s moves. Watch out for those possible moves, will ya?

See also:

London Session Recap

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

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!