Forex Afternoon Wrap – 26/11

Markets stay flat on a slow trading day

• Australia private capital expenditure q/q -9.2% vs. -2.8%
• Eurozone M3 money supply y/y 5.3% vs. 4.9%
• Eurozone private loans y/y 1.2% vs. 1.2%

Later

• Canada corporate profits

The markets opened on a quiet note today with the Asian session staying flat for the most part. Australia’s quarterly Capex came out strongly negative, falling -9.2% for the quarter, below the estimates of -2.8% declines. Last quarter was also revised lower to -4.4%. The AUDUSD declined on the news, losing -0.38% for the day at the time of writing, falling below yesterday’s low at 0.7227. The NZDUSD was also trading weaker in today’s session, losing -0.08% for the day after testing the day’s highs close to 0.6597. The Kiwi managed to post some gains since yesterday’s trading session on the Kiwi trade deficit numbers.

The Japanese Yen was stronger in today’s trading with USDJPY down -0.14% for the day. The Greenback erased all gains from yesterday after trading near the highs above 122.865. At the time of writing, the Dollar Yen was down at 122.548, trading within yesterday’s range.

The European session was quiet with no major economic releases on the agenda. The Euro was however down today losing -0.08% for the day against the Greenback after prices touched a new low below 1.0574 during yesterday’s trading session. The lack of any major news events to go by saw the EURUSD staying range bound for the most part. The British Pound turned weaker in today’s trading losing -0.19% at the time of writing. The Cable fell off the opening highs near 1.5128 and continued to drift lower to session lows near 1.5069 and as with most currencies today, GBPUSD also remains range bound off yesterday’s price action.

The US markets are closed today on account of Thanksgiving holiday and liquidity is likely to remain thin with the equity markets staying closed as well. The USDCHF managed to gain ground in today’s trading, rising 0.23% at the time of writing, but the currency pair is trading near yesterday’s highs of 1.024. USDCAD on the other hand is mostly flat today although rising 0.12% at the time of writing after testing session highs near 1.3391.

On the commodities front, Crude Oil posted sharp declines today, falling -0.90% at the time of writing after testing session highs near 43.25 but remains within yesterday’s range while Gold prices have remained flat albeit choppy with a test to 1074.5 before pulling back to the day’s open near 1070 region.