Forex news for US trading on Sept 14, 2015:
- Turnbull beats Abbott in Aussie leadership battle
- Canada announces surprise government surplus for 2014/15
- Canada Teranet house price index +5.4% y/y vs +5.1% prior
- Think tank says Fed won't hike in Sep but will be hawkish
- OPEC cuts 2016 world oil demand forecast by 50kbpd
- ECB QE Count: PSP +13.022bn last week
- Private data shows a potential oil inventory draw
- Gold up $1 to $1108
- S&P 500 down 8 points to 1953
- WTI crude oil down $0.52 to $44.11
- AUD leads, EUR lags
The Rosh Hashanah holiday might have thinned markets a bit and there were no headlines to stir up emotions in the US. Some selling went into commodities and risk assets after a poor start to the week from China but the Aussie brushed it off and rallied as high as 0.7150. The Turnbull coup wasn't a noticeable factor in the market but raised some eyebrows.
The euro was higher in Asia but began to stumble in European and continued lower in Us trading as it took out stops below 1.13. As Europe went offline it began to bounce and perked back up to 1.1318 at day's end.
Cable ended a string of solid days with a modest decline. It been a larger loss as stops hit below 1.5400 and 1.5380 but big bids stepped in at the lows and it rebounded to 1.5422.
USD/JPY also ran stops below 120.00 and hit 119.85 but the momentum couldn't gain any traction it rebounded to 120.18.
The Aussie was a standout performer on the day. We've been bantering about bottoming signs and the persistent bid despite China worries, commodity declines, risk aversion and a political coup is as good as it gets. The high was 0.7150 before scaling back to 0.7136.
Along the same lines, CAD held up fairly well despite a decline in oil. A rise to 1.3275 was stuffed back to 1.3255.
Overall, with retail sales and CPI coming up and then the Fed. The rest of the week will certainly have more drama.
