Forex Trading Library

Forex Afternoon Wrap – 26/08

0 216

Greenback strengthens on better Durable goods orders

Key Notes:

  • New Zealand trade balance -649 Million vs. -665 Million
  • Japan SPPI y/y 0.6% vs. 0.4%
  • Australia construction work done q/q 1.6% vs. -1.5%
  • Switzerland UBS consumption indicator 1.64 vs. 1.61 previously
  • UK BBA Mortgage approvals 46k vs. 46k
  • US Core durable goods orders m/m 0.6% vs. 0.3%; Durable goods orders m/m2.0% vs. -0.4%

Later

  • FOMC Member Dudley speech
  • US Crude Oil inventories

The US Dollar bounced back today across the board as the markets were seen to be slowly moving away from the turmoil just a few days ago. With the PBoC making its policy move, the markets got what it wanted as investors focused back their attention to the US economic data.

Today’s Asian trading session was quiet with no major releases. Australia’s quarterly construction work saw a solid rebound, rising 1.6%, beating expectations of -1.5%. However, the Aussie was under pressure since this morning and was trading largely flat. AUDUSD was up 0.13% at the time of writing. The Kiwi was also trading flat for the day, but was seen to be somewhat stronger against the Greenback as the currency is up 0.18% for the day.

The Yen eased back against the US Dollar, with the USDJPY notching strong gains, trading 0.86% higher for the day after previously hitting session lows of 118.6. USDJPY was trading near the 119.8 level below yesterday’s highs.

The European trading session was also quiet today with no major impact news releases. The Euro posted second straight day of losses, as the single currency fell -1.35% after hitting the highs of 1.17 earlier on Monday. EURUSD was trading at 1.136 at the time of writing. Data from the UK was limited to the BBA mortgage approvals which met estimates of 46k approvals for the month. With lack of any major news events from the UK, trading was mostly technical. GBPUSD continued its declines today losing -0.7% at the time of writing as the currency was seen testing the lows of 1.5565 support.

The Swiss Franc was also weaker as the USDCHF gained 0.9% for the day but remains within yesterday’s lows. The US Dollar Index was trading at 94.88, posting 0.97% gains for the day as the index was seen to be trading stronger after plunging to lows of 92.5 just two days ago.

On the commodities front, Crude oil trading was mostly subdued with a daily gain of near 1% but remains under risk ahead of the weekly US crude oil inventories report. WTI Crude Oil was trading at 39.75 at the time of writing. Gold futures posted continued losses today as well, marking a third straight day of losses. Gold was down -1.38% trading near the 1125 handle after the precious metal previously tested the highs of 1168 earlier on Monday.

There are no major news releases scheduled for the day with the exception of FOMC Member Dudley’s speech and the weekly EIA inventories report due later in the evening.

Leave A Reply

Your email address will not be published.