Article Highlights

  • US durable goods orders: -1.2% vs. -1.5% expected, -3.0% previous
  • US core durable goods orders: -0.4% vs. 0.0% expected, -0.9% previous
  • US S&P Case-Schiller home price index: 5.1% as expected vs. 5.0% previous
  • US flash services PMI: 54.4 vs. 55.3 expected, 55.1 previous
  • US CB consumer confidence: 97.6 vs. 103.0 expected, 102.6 previous
  • US Richmond manufacturing index: -1 vs. -3 expected, -5 previous
  • Japan’s retail sales, Australia’s inflation on tap
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The major currencies were deep in Chopsville yesterday, as forex traders priced in individual currency stories.

Uncle Sam’s economic releases caught some attention though they didn’t do the dollar much favor. Durable goods orders showed a 1.2% decline in September while consumer confidence also fell below 100.0 clock in at 97.6.

This didn’t go well with dollar bears who already doubt that the Fed would have enough reasons to raise its interest rates this year. Luckily for the Greenback, other reports like the Case-Schiller house price index and flash services PMI as well as a bit of risk aversion helped stem the dollar’s losses.

EUR/USD ended the session only 22 pips lower (-0.20%) to 1.1042 while USD/JPY inched 5 pips lower (-0.04%) to 120.41 and USD/CHF rose by 25 pips (+0.25%) to .9866.

The dollar wasn’t the only one having a bad couple of hours. The pound also failed to gain momentum as U.S. session traders priced in the U.K.’s worse-than-expected GDP numbers. Cable lost another 29 pips (-0.19%) to 1.5303 while GBP/JPY fell by 29 pips (-0.16%) to 184.26.

Last but not the least are the comdolls, which all bowed down to the Greenback’s might. Further drops in oil prices and a bit of profit-taking before this week’s major central bank events sent AUD/USD 45 pips lower (-0.62%) to .7197 while USD/CAD popped up by a whopping 80 pips (+0.61%) to 1.3267. NZD/USD escaped with only a 5-pip slow (-0.07%) to .6780 thanks to speculations that the Reserve Bank of New Zealand (RBNZ) won’t be cutting rates in the members’ meeting this week.

Will Asian session traders pick up yesterday’s themes? Japan has just released its retail sales numbers and the numbers aren’t looking pretty. Will this mean weakness for the yen or more risk aversion for the forex markets?

Australia is next with its quarterly inflation report at 12:30 am GMT. This time market players are expecting a quarterly rate of 0.7% (like the previous quarter) and an annualized rate of 1.7% (vs. 1.5% previous). Any significant hit or miss could affect the Aussie’s price action for the next couple of hours, so make sure you stick around to watch your comdoll trades!

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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