Overall, the dollar strengthened against the euro, swissy and the cad on Tuesday, but to some extent it lost ground against the pound and the yen, while the aussie closed the last day of trading at breakeven. Dollar strength came during tonight’s Asian session and on Tuesday as the U.S. equity markets closed barely in the red, denoting the market’s risk-aversion stance. Ahead, the calendar is loaded with top-tier releases over the next three days of trading, something that will certainly be reflected in the intra-day session.
The Euro (Eur/Usd) lost 90 pips in the last day of trading, on Tuesday, as the pair sold off during the early overnight session and during the U.S. trading hours. In the Asian session, the euro declined another 30 pips, shedding every pip gained this week.
The Pound (Gbp/Usd) lost 40 pips during tonight’s Asian session, shedding every pip gained one day earlier, on Tuesday. Moreover, the pound advanced as much as 140 pips during the intra-day session, but lost most of its ground during the second part of the U.S. session.
The Aussie (Aud/Usd) made a new high for the last six months of trading on Tuesday. However, at the end of the day, the aussie formed a doji-star pattern, which usually denotes market indecision. During tonight’s Asian session, the aussie struggled to break under the low reached on Tuesday.
Australia has posted a higher than expected trade balance for the month of March. Analysts were expecting a 1.73B reading when in fact; the country had a surplus of 2.50B. This is mainly due to the fall in goods and services debits, mainly in other goods and capital goods. Retail sales in Australia have increased by 2.2 percent in March which is higher than analysts’ forecasts of a 0.5 percent increase. In seasonally adjusted terms, all industries had an increase in March. Over half of the Australian economy is related to consumer spending.
The Cad (Usd/Cad) rose for the first time in the last five days of trading on Tuesday. The pair gained 50 pips, but overall the cad’s volume was low. The pair moved only during the European and early U.S. sessions, and traded side-ways for the rest of the day.
The Swissy (Usd/Chf) rose 90 pips during the Tuesday trading session, paring every pip lost on Monday. As it is the case lately, the swissy correlated with the euro, almost mirroring every move it made. In the Asian session, the swissy traded side-ways near the high reached on Tuesday.
The Yen (Usd/Yen) traded between two well-delimited areas in the previous day, on Tuesday. On the upside, the yen tried to break above the neutral pivot point (99.05), while on the downside, the 99.65 area acted as strong support. In the Asian session, the yen declined 30 pips and re-tested the support area, formed by the 20 and the 200-day moving averages.