The NY session was pretty much uneventful as the lack of any major economic or other news left markets range-bound. US equities fell a modest -0.3% on the day and the recovery from early session lows dictated the pace in currencies. Gold recovered smartly from the plunge below the all-important $1K level. The precious metal remains slightly below the Tenkan line (1003.60) and a daily close below that metric would be modestly bearish short-term. With the IMF slated to sell nearly $13 billion worth of the commodity, we remain cautious about near term rallies. The only piece of noteworthy data was the US index of leading economic indicators. It actually printed a worse than expected 0.6% but the report was generally brushed aside as most of the components were already available ahead of the release.

EUR/USD recovered from an early session spill to 1.4611 and followed stocks up to sit by 1.4670 at last look. For the short-term players, the 1.4700 level looks important. The 55-hour sma, 100-hour sma and an hourly up-trendline all converge around that mark and so we would expect this to be a formidable barrier. From a longer term perspective, the EUR/USD daily RSI saw a break below 70 from above for the first time since June. This is generally viewed as a very good sell signal. The correlation between EUR/USD and stocks remains pretty well impeccable in terms of the intraday wiggles and we would expect days devoid of economic news to see these two trade in tandem.

The Asia session is likely to prove a slow one as Japan remains on holiday. Noteworthy is the release of the New Zealand current account which could elicit some volatility in Kiwi. NZD/USD sees important trendline support by 0.7020 and below there could get dicey for the pair.

Upcoming Economic Data Releases (Asia Session) prior expected

9/21 22:45 GMT NZ  Current Account Balance  2Q  -1.247B  -1.980B 

9/21 22:45 GMT NZ  Account Deficit-GDP Ratio  2Q  -8.50%  -7.40% 

9/22 2:00 GMT NZ  Westpac NZ Consumer Confidence  3Q  106  - -