With such a significant move leading into this time yesterday the US dollar was able to bounce back through its session overnight, and it made significant ground especially against yesterday’s big gainers. The Australia dollar slide back from above 95 US cents to 94.27 US cents and is only marginally higher in early trade this morning. The US dollar run was helped by outperformance on some mid-tier data, unemployment claims continued on from last week with only 309,000 new claims and that was followed by existing home sales hitting a three year high with the Philly Fed Manufacturing Index also jumping up above expectations.
The Pound was the major loser in trade overnight with the first in a long time occurrence of a miss in economic data. Retail sales data showed a 0.9% decline and we saw the Pound sold off as a result and through the night losing more than one cent versus the Greenback.
We have a Chinese bank holiday today and also a void of local economic data which is likely to mute currency trade volatility today. BOJ Governor Kuroda is speaking at lunchtime which will be closely watched for hints if their easing policy is at all amended in the near term.
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
