Article Highlights

  • US building permits: 1.12M vs. 1.23M expected, 1.34M previous
  • US housing starts: 1.21M vs. 1.18M expected, 1.20M previous
  • NZ global dairy trade price index: 14.8% vs. -9.3% previous
  • NZ PPI input (q/q):-0.3% vs. -0.5% expected, -1.1% previous
  • NZ PPI output (q/q): -0.2% as expected vs. -0.9% previous
  • Japan trade balance: -0.37 trillion JPY vs. -0.16 trillion JPY expected, -0.28 trillion JPY previous
  • AU MI leading index steadies with 0.0% growth
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The dollar’s price action was as mixed as the crowd in Pipcrawler’s party last weekend, as forex traders priced in a couple of news reports.

Market players only had Uncle Sam’s housing data to look forward to, so it was easy to extend or retrace moves from earlier trading sessions. The dollar ended up gaining against the European currencies, losing against the comdolls, and steadying against its fellow low-yielding counterparts.

One possible reason for the decline of European currencies is profit-taking. If you recall, the pound had received a boost after the U.K.’s inflation numbers eased fears of disinflation in the economy. Meanwhile, jitters over the upcoming vote on Germany’s participation in Greece’s third bailout package could have weighed on the euro.

In any case, EUR/USD ended the session 27 pips lower (-0.24%) than its open price while GBP/USD also slipped by 30 pips (-0.19%) to 1.5664 after hitting an intraday high of 1.5717. The dollar didn’t move much against its fellow low-yielders with USD/JPY stuck just below 124.50 and USD/CHF lollygagging near the .9780 zone.

The comdolls had a better day than their European counterparts. Of course, it might have helped that gold prices have steadied after consecutive sessions of losses while oil prices popped up by 2% after dropping to near its 6-year lows.

AUD/USD inched 7 pips higher (+0.10%) to .7343 while USD/CAD dropped by a whopping 55 pips (-0.42%) to 1.3056. CAD/JPY also popped up by 47 pips (+0.50%) to 95.26 while GBP/CAD plunged by 128 pips (-0.62%) to 2.0451 and EUR/CAD declined by 99 pips (-0.68%) to 1.4403.

Last but not the least is the Kiwi, which gained 14 pips (+0.21%) on the dollar, likely on slightly better-than-expected PPI numbers and Fonterra dairy auction results.

Asian session forex traders don’t have a lot on their plate over the next couple of hours with only Australia’s MI leading index and Japan’s trade balance to rock the trading boat.

The Aussie and yen pairs don’t seem to have reacted much to the newly-released reports though, so it’s likely that the major currencies would trade on risk sentiment for the next couple of hours. Keep your eyes glued to the tube for any news that might affect the major currencies, aight?

Good luck and good trading!

See also:

London Session Recap

Forex Calendar

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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!