Forex news for US trading Nov 17, 2015:
- US Oct CPI ex-food and energy 1.9% y/y vs 1.9% y/y expected
- New Zealand GDT price index -7.9%
- Fed's Tarullo: Zero rates a good reason for Fed guidance
- IMF cuts Mexico growth forecasts for 2015, 2016
- Germany-Netherlands football match cancelled, stadium evacuated
- Comments from Fed's Powell limited to regulation
- November 2015 NAHB housing index 62 vs 64 exp
- US Oct industrial production -0.2% vs +0.1% expected
- Redbook US same-store sales +1.2% y/y
- Iran says its oil exports are priced in
- S&P 500 down 3 points to 2050
- Gold down $13 to $1069
- WTI crude down 89-cents to $40.87
- US 10-year yields flat at 2.27%
- AUD leads, CHF lags
Gold was the focus on Tuesday as it fell as low as $1065, breaking the low set in July. It's been a dramatic decline for gold -- it hit the highest levels since June just one month ago and is down in 21 of the past 24 days. The heavy selling began after the Oct 28 Fed and the inability to hold a bounce on terrorism fears yesterday was another signal to sell.
In general, the US dollar was a touch higher in New York trading but the moves were minor but some were at critical levels. EUR/USD started at 1.0666 then fell to a cycle low at 1.0630 before bouncing to 1.0643 late.
USD/JPY ran into heavy offers in the 123.50/60 zone and that capped an early rally as stocks made gains. The situation in Germany led to an unwind in sentiment and the pair slipped to 123.28 before a late recovery.
Cable was choppy. After a dip to 1.5150 in Europe, it started US trading at 1.5214 then quickly spiked up to 1.5240 before promptly giving back the gains and finishing US trading about where it started.
USD/CAD was quieter, trading in just a 30 pip range from 1.3300 to 1.3330. Oil chopped a bit but finished lower and once again USD/CAD bulls couldn't take advantage.
NZD/USD also shrugged off bad news. The GDT auction was forecast to be weak but not that weak. NZD/USD dropped about a dozen pips on the headlines but slowly recovered to 0.6470.
AUD/USD jumped about ten pips midway through trading but ran unto bids at 0.7140 the slowly faded to close near the US lows at 0.7115.