Saturday, January 1, 2011

NY SESSION: U.S. dollar softer amid surprisingly positive economic data

http://www.forex.com/uk/post?SDN=d4e1bcb8-ab7a-46d4-bd40-a5a6be5adfde&Pa=20db1fa6-e674-420c-9a87-2ee29261d638

Risk sentiment was given a boost by surprisingly positive U.S. economic data as the year comes to a close, sending the dollar lower. EUR/USD rose to session highs above 1.33, AUD/USD traded close to record highs of around 1.02, and NZD/USD advanced to around 0.7725 as the dollar softened amid positive data releases. U.S. weekly jobless claims fell below 400K to the lowest levels since July 2008 with a print today of 388K. This was much lower than the market forecasts and a drop of 34K from the prior week’s 422K indicating that the labor market is moving in the right direction. The Chicago Purchasing Manager survey for December came in much stronger than expected as well with a jump to 68.6 – the highest level in 22 years – beating forecasts of a drop to 61 from the prior reading of 62.5. In the housing market, November pending home sales unexpectedly rose by +3.5% MoM (cons. +0.8% prior 10.1%). The better than anticipated data led to a pickup in risk appetite that weighed on the dollar, however equity markets did not participate in the positive sentiment.
U.S. equities declined slightly with the Dow Jones Industrial Average closing the day down -0.13% and the S&P 500 slumped about -0.14%. Metals decline amid increased appetite for risk with gold and silver shedding about -0.51% and -0.45% respectively. Oil fell roughly -1.60% dipping below $90 a barrel as crude oil inventories fell by less than the anticipated -2.85 million barrels to -1.26 million barrels (prior -5.33 million).
On the data front for the upcoming Asia-Pacific session is Australia’s November private sector credit. Due out of China is the December MNI business condition survey and December manufacturing as well as non-manufacturing PMI.
Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

No comments:

Post a Comment