Overall, the dollar strengthened sharply yesterday in the first part of the day, but gave back almost everything during the U.S. This happened even though the equity markets were being sold, showing that trade-desks find the greenback overvalued for the time being. During tonight’s Asian session, the majors continued to advanced, but the gains were small.
The Euro (Eur/Usd) lost 100 pips during the overnight session, but recovered most of its declines during the second part of the day, mainly in the U.S. session. At the same time, the euro bounced from an important swing area, formed by the 20 and the 100-day moving averages. In the Asian session, the euro advanced a small number of pips.
The Pound (Gbp/Usd) tried and succeeded for a while to break under the area formed by the 20 and the 50-day moving averages. However, during the U.S. session the pound retraced back every pip lost earlier and gained a few more, forming a bullish candle. During tonight’s Asian session, the pound gained 30 pips.
The GfK consumer confidence for the month of March fell to -30 from a -35 reading in February. Consumer confidence in the U.K. has risen to its highest level since May of 2008 but still remains low overall. This may be partially attributed to lower interest rates for many families.
The Aussie (Aud/Usd) fell a little more than 100 pips during the early part of the overnight session. However, from there the aussie was unable to push anywhere lower, despite numerous attempts. In the last few months, the aussie topped three times around the same area, 0.6800, and now has become a support level for the pair’s price action.
Private sector credit in Australia has slowed sharply, falling to 0.0 percent. This is the lowest level the index has reached since 1994 due to crumbling household wealth while consumer and businesses scale back on borrowing.
The Cad (Usd/Cad) headed only in one direction in the last day of trading, up. The cad gained around 200 pips yesterday, and closed the day just under the 100-day moving average. In the Asian session, the cad lost 30 pips after it bounced off the same resistance area.
The Swissy (Usd/Chf) finished the last day of trading forming a doji-star, a pattern that usually denotes market’s indecision. The swissy advanced yesterday around 70 pips, retraced after hitting the resistance area formed by the 20, 50 and the 100-day moving averages. In the Asian session, the swissy had a 20-pip range.
The Yen (Usd/Yen) is trading slightly above the value it had on Monday, as the pair recovered more than 200 pips during the last few trading sessions. Only during the Asian session, the yen gained 70 pips, paring declines seen in the previous day.
Japans unemployment rate, seasonally adjusted, increased to 4.4 percent in January. The loss of jobs and high unemployment rate is at the highest levels in more than 30 years. Global sales have declined at record pace which has forced corporations in the exporting industry in Japan to cut hours and workers. The Japanese manufacturing PMI came in slightly higher than the previous reading of 31.6 to an actual 33.8 in February. Meanwhile the manufacturing output rose to 25.9 from a 22.7