Forex trading news and economic data 2 September 2015
Asia catch up - ForexLive Asia FX news wrap: Final trading day for China this week
- August 2015 Spanish jobless claims +21.7k vs -74k prior
- German machine orders jump on domestic demand
- August 2015 UK Markit construction PMI 57.3 vs 57.5 exp
- July 2015 Eurozone PPI -0.1% vs -0.1% exp m/m
- BOJ's Nakaso is watching whether QQE undermines financial liquidity
- Japan's Nippon Life says USDJPY could go to 110-115
- PBOC will require reserves for all FX derivative purchase contracts - RTRS
- OPEC said to be split on oil price forecasts- Livesquawk
- Why is Deutsche Bank expecting a soft non farm payrolls number?
- Is it time for the Aussie to really probe the downside?
The charts at the end of the session don't really tell the full story. They look like normal market movements but through the early part of the shift it looked like it could all go up in flames again
Asia stocks were off again today and USDJPY was following the Nikkei. It also had one eye on US bonds in which yields were falling. The nerves are still there as we tested 120.00 and then broke down to 119.68 and the signs were mounting that we would have another look at the Asia lows around 119.20.
Europe opened and stocks posted gains off the bat. That calmed a few nerves and put a chair under the wobbling dollar. The bounce hasn't been spectacular but we're back into 120.00 as I type
EURUSD followed the usual risk path but to a lesser extent today. Like USDJPY it looked like it might break one way or another but didn't and then settled into the middle of a 1.1240/90 range
GBPUSD isn't looking so hot right now and just cannot find a sustained bid no matter where it looks. UK construction printed positive numbers and not even that was enough to save the quid from slipping and sliding through 1.5300 to 1.5265. We sit a few pips up from there. The biggest data point comes tomorrow with the Services PMI and that might perk it up a bit, or sink it to new depths
AUDUSD is another currency under the cosh. The poor GDP numbers had done the damage already and the bounce from the lows to 0.7050 didn't last. AUD has started the month below 2001 support and that increasingly becomes a stronger and stronger level the longer we stay below. Right now, if I had to make a call, I'd say that the downside is only a matter of 'when' not 'if'
It's not gone unnoticed that EURGBP has managed to get above a strong resistance level at 0.7365/70 and that potentially opens it up for further gains, if it can hold the level
US ADP adds the first strokes to this months jobs report picture and there will be increased focus with the FOMC on the horizon. That's out at 12.15 GMT
