Greenback strengthens above 95, ignores weak durable goods orders
Key Notes:
- Australia CB leading index m/m -0.3% vs. 0.0% previously
- Australia House price index q/q 1.6% vs. 2.2%
- Japan flash manufacturing PMI 49.9 vs. 50.6
- China HSBC flash manufacturing PMI 49.6 vs. 49.4
- French Flash manufacturing PMMI 50.5 vs. 50.1
- French Flash services PMI 54.1 vs. 52.5
- German Flash manufacturing PMI 51.9 vs. 51.5
- German Flash services PMI 54.2 vs. 52.9
- Eurozone flash manufacturing PMI 52.5 vs. 52
- Eurozone flash services PMI 54.4 vs. 53.7
- Italy retail sales m/m 0.7% vs. 0.1%
- US Core durable goods orders m/m 0.5% vs. 0.5%; Durable goods orders m/m -1.8% vs. -1%
Later:
- US House price index
- US Flash manufacturing PMI
- New home sales
- Richmond manufacturing Index
The Asian trading session saw some strong selling the Euro after the currency strengthened late yesterday after optimistic comments from the Eurogroup head Jeroen Dijsselbloem. The ECB also extended its ELA assistance to Greece and there haven’t been any major changes since then. However, the Euro was weaker into today’s opening session as the Greenback saw a strong day further adding to the losses.
In the Asian session, the Aussie continued to be sold off, trading below 0.771 at the time of writing. Economic data from Australia included the house price index which increased at a slower pace of 1.6%, below estimates of 2.2%. The Kiwi dollar remained the seller’s favorite as the current was trading near lows of 0.682 at the time of writing, marking a continued sell off in the currency.
The Japanese Yen was trading mixed for the most part with no major shifts. It was however weaker against a stronger US Dollar as the currency was seen testing previous highs of 124 after forming a near double bottom around 122.658. However price needs to see a decisive close above 124 to aim for further gains.
In Europe, German, French and Italian manufacturing and services PMI was released. Overall, the Eurozone composite PMI increase to 54.1, the highest in 4 years. The Euro however ignored the fundamentals, clearly focusing on the Greece debt negotiations. The Pound Sterling posted second day of losses against the Greenback breaking below the support at 1.58 and looks likely to test as far as 1.552, where the nearest support lies.
In the US trading session, durable goods orders for the month fell -1.8%, below estimates of -1% while core durable goods orders managed to meet estimates near 0.5%. The Greenback however rallied on the news, lifting off from session open near 94.5 to trade above 95.5. Further US economic data is in store with US house price index, flash manufacturing PMI data, which could keep the volatility alive into the rest of the evening.
