US data gives the dollar a dent

<p>The FX markets have traded with a delayed reaction to the US data releases yesterday, which came in below consensus. The dollar consolidated within 30 point […]</p>

The FX markets have traded with a delayed reaction to the US data releases yesterday, which came in below consensus. The dollar consolidated within 30 point ranges overnight but as European trading resumes, the dollar has initially sold off. The market remains concerned that the recent weakness in the US data will also be reflected in the US jobs report that is to be released tomorrow.

The ADP report came in below consensus at 189k for March which has seen some economists question the consensus forecasts for NFP’s at 250k. The ISM data didn’t point to any improvement in the US manufacturing sector as exports fell, whilst the employment component failed to show signs of growth – although the severe weather disrupting the West coast ports is likely to be a large contributor to this benign reading.

The AUD stood out as the biggest loser in currency space in Asia after Australia printed its biggest trade deficit in 5 months as exports in coal were again seen falling. The continued fall in iron ore prices and the fact that inflation in Australia has bucked the global slowdown in March has increased speculation that the RBA will cut rates on April the 7th.

We have data releases from the US this afternoon in the form of the trade balance and factory orders, but this will be a mere distraction ahead of the US jobs tomorrow.



 1.0715-1.0615-1.0580 | Resistance 1.0850-1.0950-1.1050



119.40-118.20-116.70 | Resistance 120.60-121.55-122.45



Supports 1.4810-1.4740-1.4635 | Resistance 1.4990-1.5030-1.5170


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.