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Risk-taking took a step back during the latter part of the U.S. session, allowing the dollar and yen to edge higher while the comdolls returned some gains.

  • Empire State manufacturing index down from 19.8 to 9.8 vs. 15.2 forecast
  • Canadian foreign securities purchases up from 10.61B CAD to 29.46B CAD
  • New Zealand CPI fell flat in Q2 vs. projected 0.2% uptick, previous 1.0% gain

Major Events/Reports

Return in risk aversion?

The lack of upbeat major economic reports during the U.S. session kept traders on edge, allowing safe-havens like the Greenback and yen to take advantage. U.S. equity indices closed mixed ahead of key earnings reports lined up this week:

  • S&P 500 index is down 0.13 points to 2,459.14 (-0.01%)
  • Dow 30 index is down 8.02 points to 21,629.72 (-0.04%)
  • Nasdaq is up 1.97 points to 6,314.43 (+0.03%)

The Empire State manufacturing index slid from 19.8 to 9.8, lower than the projected fall to 15.2, to reflect a slowdown in expansion. Components of the report revealed that the tumble was due to lower new orders and shipments in June.

Bond yields have chalked up small gains as well:

  • U.S. 30-year yield up 0.21% to 2.899%
  • U.S. 10-year yield up 0.06% to 2.311%
  • U.S. 2-year yield up 0.29% to 1.364%

Commodities return some gains

Commodities and comdolls paused from their rallies earlier in the day as traders grew wary of rising oil output from Libya. Estimates have shown that the OPEC member nation, which is exempted from the output deal, is closing in on production levels of 1 million barrels per day.

Traders also likely booked profits ahead of the release of the inventory report by the American Petroleum Institute, which might show a draw of 3.74 million barrels.

  • WTI crude oil is down $0.52 to $46.02 per barrel (-0.07%)
  • Gold is down $0.50 to $1,233.10 per troy ounce (-0.05%)

Major Market Mover(s):


The lower-yielding dollar and yen gained from the risk-off flows that followed the upbeat start earlier in the day.

AUD/USD retreated from a high of .7839 to a low of .7790, USD/CHF climbed back to .9630, and USD/CAD pulled up from 1.2636 to test the 1.2700 handle. AUD/JPY tumbled to the 87.70 level, CAD/JPY is back down to 88.70, and USD/JPY tossed back and forth between 112.30 and 112.75.


The Kiwi was lower across the board after the quarterly CPI from New Zealand printed weaker than expected results.

NZD/USD dropped from the .7300 area to a low of .7260, NZD/JPY is down to 81.94, NZD/CHF fell back to the .7000 mark, and EUR/NZD popped up to a high of 1.5803.

Watch Out For:

  • 2:30 am GMT: RBA monetary policy meeting minutes
  • 2:30 am GMT: Australia’s new motor vehicle sales m/m (2.9% previous)