Overnight, flight-to-safety bids inspired by a lower Wall St close and downbeat Japanese Tankan data led USD/JPY to break below the 120.00 handle, with antipodean currencies well-supported by the better-thanexpected Chinese Manufacturing PMI figures. However, the risk-off sentiment abated throughout the European morning after consecutive positive Manufacturing PMI figures in the Eurozone, leading flows out of safe-haven assets such as the JPY and the CHF and into the USD. As such, the USD weighed on major pairs, with EUR/USD moving close to 1.0700 and GBP/USD holding firmly below the 1.4800 handle. Heading towards the North American open, the sharp miss in US ADP figures and downbeat comments on the US economy by Fed’s Lockhart pulled the greenback down to red territory, with commodity-linked currencies among the main benefiters and CAD gaining further uplift from a higher-than-expected Manufacturing PMI release (48.9 vs. Prev. 48.7). NZD saw some slight selling pressure after Fonterra’s GDT auction showed declines in both the price index and the whole milk power price index. However, the move was short-lived, with NZD/USD resuming its trend higher along with AUD/CAD after the DoE report showed a smaller build than yesterday’s API release, with USD/CAD moving closer to the 1.2600 level.
Looking ahead, tomorrow sees the ECB publish their March 4-5 minutes, while US Initial Jobless Claims, Continuing Claims, Trade Balance and Durable Goods Revisions are all tier-1 data releases to watch out for. Finally, Fed Chair Yellen is due on the speaker slate along with Fed’s Brainard.
Looking ahead, tomorrow sees the ECB publish their March 4-5 minutes, while US Initial Jobless Claims, Continuing Claims, Trade Balance and Durable Goods Revisions are all tier-1 data releases to watch out for. Finally, Fed Chair Yellen is due on the speaker slate along with Fed’s Brainard.
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