The NY session finally brought the much awaited break in currencies. The risk trade offered little direction as equities closed about flat for the fourth consecutive day this week. US economic data was mixed with the backward looking 2Q GDP revision coming in better than expected at an unchanged -1.0%. Meanwhile, initial jobless claims were a touch worse than forecast at 570K after a 580K print the prior week. This left stocks better offered in early NY trading but they would eventually grind their way back up into the close.
The catalyst for the sharp price action in the latter half of the session looks to have been oil. The commodity broke into positive terrain and closed just below the $73 mark. The pop coupled with some important technical breaks saw EUR/USD scream higher. The pair tested the air above 1.44 briefly but eventually settled near 1.4340 at the end. Cable rode the coattails of the US dollar selloff and recovered in size. The pair was sitting near 1.6270 after printing a NY low of 1.6154 earlier. The commodity currencies were not left behind. USD/CAD plunged towards a 1.0880 close after a major head-fake run above 1.10. AUD/USD for its part made an earnest attempt at 0.84 and continues to flirt with this level as we head into overnight trading.
Upcoming Economic Data Releases (Asia Session) prior expected
- 8/27 22:45 GMT NZ Building Permits MoM JUL -9.50% - -
- 8/27 23:01 GMT UK GfK Consumer Confidence Survey AUG -25 -24
- 8/27 23:15 GMT JN Nomura/JMMA Manufacturing PMI AUG 50.4 - -
- 8/27 23:30 GMT JN Jobless Rate JUL 5.40% 5.50%
- 8/27 23:30 GMT JN Household Spending (YoY) JUL 0.20% -0.60%
- 8/27 23:30 GMT JN Natl CPI YoY JUL -1.80% -2.20%
- 8/27 23:30 GMT JN Natl CPI Ex Food, Energy YoY JUL -0.70% -0.80%
