July 2nd, 2014
After being influenced strongly by technical factors and reported barrier interest during Tuesday, price action on Wednesday was driven much more by fundamental factors and major data releases.
The Australian dollar was the first currency to be influenced significantly during the Asian session. After probing important resistance levels near 0.9500, AUD/USD was undermined by a much weaker than expected trade report. The monthly deficit was much worse than expected at AUD1.91bn compared with the consensus AUD0.17bn and there was a huge revision to the previous month’s data with a shortfall of AUD0.78bn. AUD/USD dipped sharply to test support near 0.9450 on fears over weaker Chinese demand. Read the rest of this entry »
July 1st, 2014
The dollar remained generally on the defensive during Tuesday, unable to recoup losses seen in the New York session on Monday with bulls frustrated yet again over the inability to make headway, but it did find defenders at lower levels. The Chinese PMI manufacturing data was slightly stronger than expected which helped underpin risk conditions on hopes that the economy could be stabilising. Read the rest of this entry »
June 30th, 2014
The dollar was unable to make any significant impression during the Asian session on Monday with the trade-weighted index continuing to drift near one-month lows.
The Australian dollar initially held firm as AUD/USD looked to challenge the 0.9430 resistance area with failure here triggering significant selling. There was also caution ahead of Tuesday’s Reserve Bank policy meeting with expectations of a generally dovish slant and AUD/USD dipped back below the 0.9400 level. Read the rest of this entry »
June 27th, 2014
Currency markets have continued to lack any energy or dynamism over the past 24 hours with the approaching weekend a further drain on what little activity remained with the dollar unable to make any headway.
The latest Japanese inflation data was in line with expectations with a core 3.4% annual increase, the highest rate since 1982. There was a very sharp decline in household spending which will potentially cause major concerns, although the retail sales data was more encouraging which will maintain uncertainty over underlying direction and potential policy action. Read the rest of this entry »
June 26th, 2014
Thursday’s Asian session was again devoid of significant action with marginal gains for commodity currencies as USD/CAD dipped towards 1.0700 and AUD/USD challenged resistance above 0.9400. The Euro overall drifted lower with no fundamental support on offer during the day.
Sterling was the main moved during the European session with the Bank of England releasing its latest financial stability report and latest recommendations. GBP/USD pushed sharply higher ahead of the report with stop loss buying triggered on a move above 1.7000. Read the rest of this entry »