The currency focus overnight was left to one piece of economic data as there was nothing up from the rest of the market, and the durable goods orders print from the States was quite a margin away from median estimates.
The core figure came in at -0.6%, and the Headline number was -7.3% and that were versus 0.6% and -3.0% expected.
The US dollar as a result was sold off across the board with the Australian dollar spiking up over 60 pips in the minutes following to hit 90.69 US cents, the Euro and Pound rose by a similar amounts.
The gains however were short-lived with the US dollar pulling back most of the losses, with the gains overplayed due to the lack of activity through yesterday’s sessions.
This morning has been like Groundhog Day from yesterday’s trading on precious metals, as Gold moved up to 1404.89 USD an ounce nearing yesterday morning highs. And like yesterday we have seen a pull back with Gold back to 1401 USD, silver has also eased back to 24.25 USD an ounce from its highs overnight.
Currency markets are yet again void of any economic news stimulus to govern trade flow so we are likely to see a repeat of yesterday which saw a lot of range bound trading.
Later this afternoon we lead into German Ifo Business Climate data which is expected to show 4 straight months of improving conditions putting the focus back on the Euro.
Joel Murphy
www.pepperstone.com
Joel Murphy is a currency analyst and market commentator for Forex Broker Pepperstone and he regularly features on Sky Business News Australia. He has worked in both retail and institutional Forex for last 8 years and completed a Bachelor of Commerce and a Bachelor of Arts from Monash University
