The markets today had a bit of a slow patch as economic data did not serve anyone in particular, but for the most part volatility still remained if you were searching for it among the various majors and commodities.
The GBPUSD saw a fair amount of action overall as it dropped to find support at 1.5516 on the charts. This was led in part by the various economic indicators for the UK economy missing forecasts as retail sales y/y came in at -0.2%. For many watching the UK economy this is a sign of weakness as the domestic market has failed to pick up, but you've also got to look at the bigger picture and that the UK was stressing over Greece last month and going forward we could certainly see an improvement in the pound.
The Canadian dollar was another big mover on the charts, but it failed to make any movement lower in the USDCAD as despite the fact that core retail sales lifted to 0.9% compared to the expected 0.8%. While it was all positive news we saw American unemployment data show positive signs as unemployment claims shrunk to 255k. So despite this positive Canadian data that did come about, it failed to really slow down the USD movement we have seen, and will likely continue to see.
Commodities including gold have shown that there is no real appetite left as of late, as gold prices have shifted lower as the pace picks up across the sector. For the most part support at 1090 is no surprise, but what is, is the fact that no one is sure if Gold can really hold up in an economic boom or get dragged on by further positive data. I would certainly be expecting large plays lower and in the long run at least a run completely to down around 1000.
The Kiwi dollar got another sharp rebuff from economists as economic data disappointed all together, falling to 0.6614. Trade balance data which had expected to be relatively positive has shown how bad the economic situation is as it shifted back down the charts to -60M. Many will be viewing this as a fact that the NZ economy is very weak, and it looks like current markets predict a rate cut of at least 50 basis points come the next RBNZ meeting,
The AUD is the one to watch in final trading hours, as Chinese manufacturing data is likely to be a tough one for the markets to digest. The AUDUSD has so far fallen heavily on the charts and it's likely to come under further pressure so this is clearly one to watch.
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