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Overall, the currency markets traded mostly side-ways during the overnight session on Wednesday. In the U.S. session, the major pairs became very volatile, as equity markets headed lower. The final strike came during the last part of the U.S. session, when the dollar surged against every other major currency, following closely the moves seen in the S&P futures. Following Wednesday’s gains, the dollar regained some of the ground lost over the last few days of trading.  

The Euro (Eur/Usd) fell to TheLFB R1 (1.3890) during the overnight session, but the pair became very volatile once it touched that level. During the U.S. session, the pair had some sudden swings in sentiment, causing extreme volatility with its moves up and down. As with the other major pairs, the pair saw strong selling orders in the last part of the U.S. session, something that contributed to its 160 pip decline on Wednesday. 

The Pound (Gbp/Usd) was the only major pair that did not drop compared to the dollar on Wednesday. The pair posted gains up until the last part of the U.S. session, when the S&P plunge caused the pound to shed most of the gains seen earlier. At the end of the day, the pound gained only 30 pips.

The Aussie (Aud/Usd) moved only side-ways on Wednesday, but during the second part of the U.S. session, the aussie broke through the support area of the intra-day range and fell more than 100 pips. The move came inline with the declines observed in the equity markets.

The trend estimate for total new capital expenditures in Australia fell in terms of volume by 0.7% percent in the March quarter of 2009 while the seasonally adjusted rate fell 8.9 percent. The estimate for buildings and structures rose by 4.4 percent this quarter, and 4.7 percent seasonally adjusted.

The Cad (Usd/Cad) spent most of the European and the U.S. trading hours testing the 1.1100 support level, but the pair was unable to break any lower. During the late U.S. session, the cad started to reverse the gains posted earlier, and picked up more than 120 pips from the session’s low. At the end of the day, the cad gained 60 pips.

The Swissy (Usd/Chf) saw a very chaotic day of trading on Wednesday. The swissy had a 60-pip range during the European and the U.S. sessions, from which the pair just bounced up and down repeatedly. However, by the end of the U.S. session, the swissy managed to break through this range. 

The Yen (Usd/Yen) moved relatively volatile in the previous day trading, on Wednesday. The pair struggled to hold above the 95.00 support level, but during the U.S. open, the pair broke lower for a short period. During tonight’s Asian session, the yen surged 60 pips in a very short time-span, breaking above the 100-day moving average. 

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