USD falls against most of its major counterparts on speculation that Fed policy makers will further support keeping low borrowing costs for an extended period.

  • Australia's dollar advanced to a 13-month high against the US dollar after a report posted better-than-expected retail sales, adding to speculations that the Reserve Bank of Australia will raise rates as early as November.  The Australian dollar rose against all its major counterparts as retail sales climbed 0.9% in July against a forecast of 0.5%.  The AUDUSD rose over 1% touching 0.8803, the highest level since August 2008.
  • Concerns that consumers will not help drive a quick and strong economic recovery escalated as the US Consumer Index fell unexpectedly.  The Conference Board said its confidence index, a widely watched barometer, dipped to 53.1 in September, down from a revised 54.5 in August.  Economist had expected a reading of 57.
  • UK's economy contracted by 0.6%, less than the anticipated 0.7%, taken by analysts and some government officials as a sign of recovery.  The sterling made a sharp recovery against the greenback after it hit 1.5823, rising over 200 pips back above the 1.60-level, on the back of better than expected data out of the UK.
  • WTI crude oil rose to as high as 67.30 before pulling back to about 66.70 yesterday on the back of weaker economic data and inventory buildup.  In the oil report to be released today in the US session, the Energy Department will probably show crude inventory built further up along with gasoline and distillate stockpiles.  Gold prices fell initial on USD strength to a low of 985.12 but then recovered and now trading above the 996-level.

Currency and Commodity to watch out for: EURUSD & Crude Oil

  • The EURUSD pivot point is at 1.4560 with a preference to enter into long positions at 1.4570
  • Crude Oil pivot point is at 66.00 with a preference to enter into long positions above 66.00

Today's calendar and market movers:

  • German Unemployment Change expected to rise to 19,000
  • US ADP Employment Change expected to rise to -200,000
  • Canada GDP month on month expected to rise to 0.4%
  • US Final GDP quarter on quarter expected to drop to -1.2%

Stocks: 

  • US stocks fell on Tuesday with the Dow -0.5%, the S&P -0.2% and the NASDAQ -0.3%.
  • As of 06:05 GMT the Nikkei is trading at 0.33% and the Hang Seng at -0.73%