- Forex today was mixed while risk sentiment flipped from one session to the next as Wall Street sulked lead by poor performances in the Health sector.
The upbeat tones from China faded out over time, despite the upside surprises across all data which gave a temporary lift to the Aussie and some much-needed support tot he kiwi following its CPI miss that sent the bird off a cliff.
U.S. data/ yields
We had some Fed speakers that included Bullard, again, repeating that the yield curve will continue to steepen as the economy continues to grow. Then, Harker argued for sustained growth and advocated an additional hike for 2019 and then another in 2020 - The chances of a Fed rate cut by December, implied by Fed fund futures, remained at 50%. Traders were awaiting the Fed’s Beige Book as the next gauge of the U.S. regional economic conditions. However, there were little changes from the slightly moderate growth pitch in the text. As for U.S. yields, the U.S. 10yr treasury yield climbed from 2.58% to 2.61% for another high this month while the 2yr yield ranged between 2.39% and 2.43%, tailing off towards the close.
Currency action (Analysts at Westpac summed up key moves from the G10 space)
- EUR/USD probed above 1.1320 then eased back to 1.1300, a touch higher over the day. GBP/USD was quiet in the mid-1.3000s.
- USD/JPY is flat on the day near 112.00.
- AUD/USD was unable to extend its bounce on the stronger China data, slipping back to 0.7175, unchanged on the day.
- NZD/USD preserved some of yesterday’s CPI-led losses, ranging overnight between 0.6705 and 0.6745.
- AUD/NZD was stable overnight around 1.0680, following yesterday’s NZ CPI-led jump to 1.0732 – the highest since November.
Key notes from US session:
Key events ahead:
"In Australia today the employment data will dominate. We, like the market are predicting the unemployment rate will rise marginally to 5.0%, but we expect a slightly lower than consensus +10k for employment," analysts at ANZ bank explained.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.