Forex news for North American trading on January 7, 2020:
- ISM non-manufacturing index 55.0 vs 54.5 expected
- US factory orders for November -0.7% versus -0.8% estimate
- New Zealand GDT price index +2.8%
- Canada November international merchandise trade -$1.09B vs -$1.2B expected
- US trade balance for the month of November $-43.1 billion versus $-43.7 billion estimate
- McConnell says he has the votes for Trump impeachment trial
- US sells 3-year notes at 1.567% vs 1.563% WI
- New Zealand QV price index +4.0% y/y
- Canada December Ivey PMI 51.9 vs 60.0 prior
Markets:
- Gold up $6 to $1572
- WTI crude oil down 64-cents to $62.63
- S&P 500 down 9 points to 3237
- US 10-year yields up 1.6 bps to 1.82%
- USD leads, AUD lags
The dollar held a solid bid throughout the day to erase some of the early 2020 losses. The big technical mover was the Australian dollar as it fell back below the 200-day moving average on worries about fires and USD strength.
The general theme was weakness in risk trades but it was modest and the dollar was stronger even against the yen as it ticked to 108.63 at the high in part due to a positive reading in the ISM non-manufacturing survey.
The euro and cable were flattish early in Europe but started to drift lower and that accelerated into the London fix when both hit the lows of the day before flattening out late.
A chart to watch is EUR/CHF as it momentarily ticked below the 2019 low before stabilizing just above it.
