There was a little bit of activity across some of the major crosses last night but all in all the session will pale in comparison to later in the week. The Funding/Debt ceiling negotiations are yet to have traders reaching for the panic button but that time is approaching. There was some solid support for the Pound which recovered about 80 pips from Friday’s sell off. The Pound is sitting at 1.6089 USD but still well off last week’s traded high of 1.626 USD. The Euro had a more dour session and was range bound for the last 24 hours currently sitting 10 pips higher than it opened yesterday morning. The Australian dollar was actively traded in a half cent range and yet again was unable to get any higher than 94.5 US cents.
The central piece of relevant data overnight saw the Canadian dollar initially struggle was Building Permits which contracted a massive 21.2% month on month which discounted last month’s 21.4% rise. The US dollar did managed to peak at 1.0333 CAD but with the S&P down 0.85% trader’s quickly exited their long US dollar position and the Greenback slide 40 pips through the US session.
The local session will be more active today after yesterday Labor Day holiday around different Australian States and we see the release of NAB business confidence data at 11.30am. The data will be closely watched for any post-election confidence bounce and released concurrently is ANZ Job Advertisements which has contracted for the last 6 straight months.
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
