US Market Wrap: Dollar on the defensive ahead of FOMC meeting
- New Zealand: Trade Balance 2245 GMT
- Australia: CPI 0130 GMT
US Data released:
- Durable Goods Orders for March (Actual 0.8% vs forecast 1.8%, ex-transport -0.2% vs forecast 0.5%)
- Case-Shiller Home Price Index (Actual 5.4% vs forecast 5.5%)
- Consumer Confidence-April (Actual 94.2 vs. forecast 96.0)
- Markit Services PMI-April (Actual 52.1 vs. forecast 52.3)
- American Petroleum Weekly Crude Oil Stocks (Actual -1.1mln barrels vs. previous 3.1mln barrels)
Forex markets were rather noisy and choppy but when all was said and done, the US dollar was just a tad worse off at the end of the day than where it was when it started. As usual there are exceptions, and those included EURUSD and AUDUSD, which ended the day flat.
USDJPY snapped a three-day downtrend and broke above ¥111, in part due to rising yields. GBPUSD poked its head above 1.4600 after this mornings weak US Durable Goods data, but drifted back to the opening level by the end of the day. Rising crude oil prices gave the Canadian dollar a lift.
The weak US data was not totally unexpected. Still it should be enough to throw cold water on hopes for a hawkish sounding Federal Open Market Committee statement on Wednesday.
Oil prices were firm all day and flirted around the $44.00/barrel level and then spiked to a high of $44.70/b after hours on news of a million barrel decline in US crude stocks as reported by API.
At the end of the day, equity traders bit into Apple (AAPL: NASDQ) and found a worm. The telecommunications and computer company's quarterly revenue declined for the first time in 10 years helping to drive shares down 5.4% in after hours trading.
Chinese data releases occasionally have a big impact on FX markets. But should you trust the numbers from Beijing? TradingFloor contributor, Pauline Loong is not impressed. Read her article Stimulus successful… but China's not moving.
AUDUSD looks to be an attractive buy on pullbacks according to TradingFloor contributor, Clive Lambert. See his trade view: Aussie dollar remains attractive on dips
Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to engage with Saxo Bank's social trading platform.
Missed a day? Here’s what we had to say during our Asian session and our regular European Morning Markets, From the Floor and Mid-session Europe.