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The USD has continued to give back recent gains throughout the day, with the USD-index breaking back below the key 100.00 level after failing yesterday to hit fresh highs. Losses in the USD were then exacerbated after a below Exp. reading of ISM Manufacturing (48.6 vs. Exp. 50.5), with the USD weakness filtering through to major pairs and as such seeing EUR and GBP both gain against the USD . Of note, the former remaining above the key 1.0600 level ahead of the crucial ECB rate decision scheduled on Thursday.
Away from the USD, antipodean currencies were also in focus today, with AUD seeing strength after Australian building approvals beat Exp. (Y/Y 12.3% vs. Exp. 5.7%, M/M 3.9% vs. Exp. -2.5%), while AUD found additional support following the RBA’s decision to stand pat on rates and maintain a neutral bias. Separately NZD also spent the session in the green, benefitting from early commodity strength as well as seeing Fonterra's Globaldairytrade price index increase 3.6% and whole milk powder price index rise 5.3% in the bi-monthly GDT auction.
Elsewhere, CAD notably underperformed against the USD today, with the currency softening on the back of the latest GDP reading (M/M -0.50% vs. Exp. 0.00%), which showed the largest monthly fall since 2009. This is of added significance this week, with tomorrow set to see the BoC rate decision, whereby all surveyed analysts are expecting the decision to remain unchanged.
Looking ahead, as well as the aforementioned BoC rate decision, tomorrow sees Australian GDP, Eurozone CPI reading, US ASP employment change and Fed beige book release as well as comments from Fed’s Brainard, Lockhart, Williams, Tarullo and Yellen.
Away from the USD, antipodean currencies were also in focus today, with AUD seeing strength after Australian building approvals beat Exp. (Y/Y 12.3% vs. Exp. 5.7%, M/M 3.9% vs. Exp. -2.5%), while AUD found additional support following the RBA’s decision to stand pat on rates and maintain a neutral bias. Separately NZD also spent the session in the green, benefitting from early commodity strength as well as seeing Fonterra's Globaldairytrade price index increase 3.6% and whole milk powder price index rise 5.3% in the bi-monthly GDT auction.
Elsewhere, CAD notably underperformed against the USD today, with the currency softening on the back of the latest GDP reading (M/M -0.50% vs. Exp. 0.00%), which showed the largest monthly fall since 2009. This is of added significance this week, with tomorrow set to see the BoC rate decision, whereby all surveyed analysts are expecting the decision to remain unchanged.
Looking ahead, as well as the aforementioned BoC rate decision, tomorrow sees Australian GDP, Eurozone CPI reading, US ASP employment change and Fed beige book release as well as comments from Fed’s Brainard, Lockhart, Williams, Tarullo and Yellen.
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