Sideways price action dominated the NY session as the Columbus Day holiday in the US kept volume muted. Equities managed to squeeze a modest 0.4% gain on the day and this kept the US dollar under pressure. The dollar index was down about -0.3% at last look as the greenback continues to move opposite to the risk trade. Bond markets were closed and economic data was non-existent, adding to the overall lull. Gold continued to chop around and the 1050 area still looks like solid support in the short term. The precious metal traded in range-bound fashion between 1051/1059 and we would expect any excursion much lower to find support by the 1042 area. EUR/USD managed to close about 10 pips above the NY 1.4768 open after finding the air above 1.48 too thin as well. The price action should heat up now in the upcoming Asia session and one of the highlights is New Zealand retail sales up at 2145GMT. The market is looking for a 0.5% MoM gain on both the headline and ex autos numbers. Better results should see Kiwi test back towards the 0.74 zone.
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