The New York session saw the dollar on a bit of a yo-yo ride. As New York got going we saw the usual dollar weakness. We saw EURUSD trade up tot eh 1.4730/35 area, GBPUSD trade above 2.1070 and USDCAD trade down to the .9060/65 area. All of these pairs did a 180 degree turn once the market saw that they could not get the dollar lower from those levels.  EURUSD retreated to the 1.4620/30 support zone and GBPUSD turned lower and traded down to the 2.1010/15 support area.  These turns lower could just be the market taking profit ahead of interest rate decisions due tomorrow by both the BoE and ECB. While the market expects both banks to remain unchanged, no one wants to be caught off guard. The biggest reversal of the day was seen in USDCAD.  After taking out the .9200 and .9100 levels overnight and trading down near .9060 the pair completely reversed all its losses and then some. The pair has managed to trade above the .9300 as of this writing.  The daily candle stick charts have formed a major reversal pattern. The market is thinking that this pair has come too far too fast. Reports lately have the pair undervalue by as much as 10% in some cases. It looks like we are seeing some profits locked in going into the end of the day. Canadian housing data is due tomorrow. If that number comes in worse than expected we could see more profit taking in this pair and see the rally continue.

A handful of major economic release out of the Asian time zone later on should add a spark to the markets.  These releases are previewed below.  Please check the economic calendar for precise times of all releases.

Upcoming Economic Data Releases

  • 21:45 GMT New Zealand Unemployment Rate for Q3; expect 3.6% vs. prior 3.6 %( relevance: high)
  • 21:45 GMT New Zealand Employment Change for Q3; expect 0.4% vs. prior 0.7 %( relevance: high)
  • 23:50 GMT Japanese Machine Orders for September; expect -1.5% vs. prior -7.7 %( relevance: high)
  • 00:30 GMT Australian Unemployment Rate for Oct.; expect 4.2% vs. prior 4.2 %( relevance: high)
  • 00:30 GMT Australian Employment Change for Oct.; expect 20k vs. prior 13k (relevance: high)