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Market Session Recaps

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Asia Session

Tue, Aug 5 2008, 06:05 GMT
by Forex.com Research Desk

FOREX.com

One rate decision down, three to go......The Reserve Bank of Australia kept its cash rate unchanged as the market expected at 7.25%. Although the decision to leave the rate at a 12 year high was expected, the statements by RBA Governor Glenn Stevens following the announcement showed signs that in the tug-of-war between inflation and a slowing economy, the slowing economy may be the bigger concern, and future cuts were not out of the question. The AUD/USD collapsed on the news, hitting a low near 0.9234, a level not seen since mid April.       
The pair had a pre-announcement level of 0.9282. Most Aussie pairs followed the same script, although AUD/CAD rebounded back to pre-decision levels while the others have not. NZD/USD took a hit as well, leaving its 0.7295 highs in the distance as it hit a low near 0.7250 after the announcement. Australian and New Zealand's currencies have been brutalized as of late especially in lieu of the recent drop in commodity and oil prices.       
      
The EUR/USD continued to lose ground versus the Greenback as the pair, which started the session near its 1.5578 highs took a slide to 1.5525 low in what can be assumed was some position squaring in a thin market ahead of the NY data tomorrow.       
      
USD/JPY was really choppy in a 15 pip range which really warrants no commentary on my behalf, other than it hit a high of 108.29 and a low near 108.14. EUR/JPY slid from highs near 168.65 to session lows just under the 168.00 mark as London began its day.      
      
With Canada on a holiday, USD/CAD pushed to highs not seen since September of 2007. The pair opened near its lows of 1.0360 and just flew north through some option barriers to reach a high of 1.0425 at the tail-end of the session.       
      
In the London session we have some PMI data from France, Germany, the UK, and the Euro Zone, as well as Euro Zone Retail Sales. With the RBA now history we still have the FOMC at 2:15 EST tomorrow, followed by the BoE and the ECB decisions as the week winds down.

Upcoming Economic Data Releases (London Session):

• 8/5/2008 7:50 FR  PMI Services  JUL F  47 47
• 8/5/2008 7:55 GE  PMI Services  JUL F  53.3 53.3
• 8/5/2008 8:00 EC  PMI Services  JUL F  48.3 48.3
• 8/5/2008 8:00 EC  PMI Composite  JUL F  47.8 47.8
• 8/5/2008 8:30 UK  Industrial Production (MoM)  JUN  -0.80% 0.10%
• 8/5/2008 8:30 UK  Industrial Production (YoY)  JUN  -1.60% -1.20%
• 8/5/2008 8:30 UK  Manufacturing Production (MoM)  JUN  -0.50% 0.10%
• 8/5/2008 8:30 UK  Manufacturing Production (YoY)  JUN  -0.80% -0.60%
• 8/5/2008 8:30 UK  Official Reserves (Changes)  JUL  $462M  - -
• 8/5/2008 8:30 UK  PMI Services  JUL  47.1 46.6
• 8/5/2008 9:00 EC  Euro-Zone Retail Sales (MoM)  JUL  1.20% -0.60%
• 8/5/2008 9:00 EC  Euro-Zone Retail Sales (YoY)  JUN  0.20% -1.30%

Published on  Tue, Aug 5 2008, 06:07 GMT