Forex Trading Library

Forex Afternoon Wrap – 30/09

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US Dollar trades firm into end of Q3

Today’s Economic Data:

  • Australia building approvals m/m -6.9% vs. -2.0%; y/y 5.1% vs. 7.4%
  • Australia private sector credit m/m 0.6% vs. 0.5%; y/y 6.3% vs. 0.5%
  • Germany retail sales m/m -0.4% vs. 0.2%; y/y 2.5% vs. 3.3%
  • UK Nationwide HPI m/m 0.5% vs. 0.4%; y/y 3.8% vs. 3.8%
  • Germany unemployment change 2k vs. -5k
  • Germany unemployment rate 6.4% vs. 6.4%
  • UK Q2 GDP 3rd estimate 0.7% vs. 0.7% y/y 2.4% vs. 2.6%
  • UK Current account -16.8bn vs. -22.0bn
  • UK Index of services 3m/3m 0.8% vs. 0.8%; m/m 0.2% vs. 0.2%
  • Eurozone CPI estimates y/y -0.1% vs. 0.0%
  • Eurozone Core CPI estimates y/y 0.9% vs. 0.9%
  • Eurozone unemployment rate 11.0% vs. 10.9%
  • US ADP Employment change 200k vs. 190k
  • Canada GDP m/m 0.3% vs. 0.2%; y/y 0.8% vs. 0.7%

Later:

  • Crude oil inventories
  • Fed Yellen speech

The markets were showing signs of recovery since early Asian trading session with most of the equity markets in Asia closing higher for the day. There was a modest recovery across the board as the Aussie and the Kiwi posted modest gains. AUDUSD surged to daily highs above 0.7035 before trimming its gains. The Aussie gained as building permits disappointed falling more than expected while private sector credit posted strong gains, rising 6.3% annualized. The Kiwi was also lifted as NZDUSD gained to post daily highs near 0.6389 before easing back from the daily highs. The Japanese Yen which strengthened in the past few days gave back its gains as USDJPY was trading stronger, gaining as much as 0.39% for the day at the time of writing, posting a session high above 120.26 at the time of writing.

The European trading session saw the release of Germany retail sales which fell -0.4% for the month, bringing the annualized retail sales to 2.5% below estimates of 3.3%. Germany’s labour market data showed the unemployment change of -2k while the unemployment rate remained unchanged at 6.4%. Data from Eurozone included the CPI estimates, which fell -0.1% on the headline, while the core CPI remained unchanged at 0.9%. EURUSD was weaker today losing -0.47% for the day after the single currency failed to hold on to its gains above 1.1255.

Data from the UK saw the second quarter GDP confirming a 0.7% growth. The British Pound initially weakened on the news but later staged a modest rally which saw the GBPUSD test session highs of 1.521 before dipping back lower. UK’s current account deficit was better than expected at -16.8 billion below estimates of -22 billion.

The US trading session saw the release of the monthly private payroll numbers from ADP which saw the US economy adding 200k private jobs. Data from the month before was revised lower to 186k from 190k previously. The US Dollar did not react much to the news staying firm, posting nearly 0.33% of gains after the release.

Canada’s monthly GDP data showed the Canadian economy growing at a pace of 0.3% on the monthly and 0.8% annualized exceeding expectations of 0.2% and 0.7% respectively. USDCAD was trading largely sideways but is lower -0.09% at the time of writing after USDCAD tested the highs of 1.3452 yesterday.

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