Aussie Hit on Poor GDP Data to Kick off a Busy Day
We saw the currencies trading in relatively familiar ranges overnight as the same recent themes of the US tax bill and the UK’s Brexit continue to dominate market chat. The dollar has managed to grind higher for most of the sessions back towards last weeks highs, however a dip in the stock markets has seen it retreat this morning in Asia.
We’ve seen the Aussie take a knock early in the Asian session today as the GDP figures came out worse than expected at 0.6% against expected 0.7% this has led to a sharp 30 pip drop in the currency against the dollar and the crosses. UsdJpy has also been on the back foot in line with the global stock indices and is approaching a key level at the base of the cloud.
Looking ahead to the rest of today’s trading and it’s quiet through the rest of the Asian session and the London open in terms of fundamental data releases but things look set to liven up into the New York session. We have the ADP Non Farm Payroll data due out with market expectation at 189k early in the session which is considered to be a good front runner for the Non Farms later in the week and then we have the Bank of Canada due out later in the day. Expectation is for no change, but we have seen some decent moves across the currency on the back of the banks statements in the last couple of meetings so traders will be playing close attention to that.
So, a big day ahead in potential market moving events with a few of the majors sitting close to decent technical levels as well.
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