16 Oct 2013
Session Recap: Dreadful DC continues to dominate traders’ decision paradigms
FXstreet.com (Barcelona) - Light news flow during the Asian session Wednesday kept the primary focus on the news and rumor flow out of the US – which right now is looking more hopeful.
Few data points were released to give traders directional guidance
Traders got New Zealand CPI data that was a little hot (NZD-bullish) and Australian Leading Index data that was a little cool (AUD-bearish – at least in theory) and that was it for Wednesday’s Asian session. The kiwi’s reaction to the bullish data was to rise initially – jumping from 0.8371 to 0.8407 in the first couple of hours folloing the data release.
Subsequently, however, much of those gains have been given back. The same “rally and give back” pattern shows up on the charts of the Aussie pairs following the Aussie data.
Outside of the Aussie and New Zealand news and reaction, there has been little noteworthy news to react to / report on. Most of the trading has been quiet and seemingly anticipatory in front of a potential resolution to US problems as well as Chinese, European, British and US data later in the Wednesday session.
The trading action is pointing back to “risk on” early Wednesday
When scanning the currency futures contracts for general directional info, we quickly notice strength in the risk currencies – the Aussie and Canadian Dollar contracts – and sluggishness in the safety currencies – the Yen and the Swiss Franc. The strength in the S&P 500 futures (up over 8 handles as of 04:00 GMT) and the DXY reflect renewed hope by global investors that things may get resolved in Washington on Wednesday.
Few data points were released to give traders directional guidance
Traders got New Zealand CPI data that was a little hot (NZD-bullish) and Australian Leading Index data that was a little cool (AUD-bearish – at least in theory) and that was it for Wednesday’s Asian session. The kiwi’s reaction to the bullish data was to rise initially – jumping from 0.8371 to 0.8407 in the first couple of hours folloing the data release.
Subsequently, however, much of those gains have been given back. The same “rally and give back” pattern shows up on the charts of the Aussie pairs following the Aussie data.
Outside of the Aussie and New Zealand news and reaction, there has been little noteworthy news to react to / report on. Most of the trading has been quiet and seemingly anticipatory in front of a potential resolution to US problems as well as Chinese, European, British and US data later in the Wednesday session.
The trading action is pointing back to “risk on” early Wednesday
When scanning the currency futures contracts for general directional info, we quickly notice strength in the risk currencies – the Aussie and Canadian Dollar contracts – and sluggishness in the safety currencies – the Yen and the Swiss Franc. The strength in the S&P 500 futures (up over 8 handles as of 04:00 GMT) and the DXY reflect renewed hope by global investors that things may get resolved in Washington on Wednesday.