The NY session was rather lackluster as markets mostly consolidated following the US dollar bashing overnight. US equity marts rose about as much has futures had anticipated but underperformed their European counterparts, rising just 0.7% on the day. Testament to the USD consolidation was the price action in EUR/USD which opened the session at 1.4784 and was sitting a couple of pips above that at last look. The pair made another attempt for the 1.4825 option barrier but came just short, putting in a session high of 1.4815. The pair looks to be coiling up in an hourly pennant formation and a breakout to 1.49 cannot be ruled out by the technicals.
On the economic data front, Canadian retail sales disappointed in size as the headline came in at -0.6% while the ex auto sales print was a more dreadful -0.8% -- the market was looking for gains in both so the surprise was palpable. USD/CAD promptly squeezed up to the 1.0736 session high but continues to find formidable resistance at the 200-hour sma which lurks up there. US data was less noteworthy with the Richmond Fed manufacturing index printing a worse than expected 14 for September. More interesting was the stellar 2-year Treasury note auction which saw a 3.23 bid/cover while indirect bidders (proxy for foreign central banks) took 45% of the total. The results were well above recent trends and suggest demand for US paper is unwavering.
The commodity complex was decidedly bid on the back of the overall US dollar weakness. Gold traded mostly sideways in NY but managed to squeeze up to 1019.85 before settling near the middle of the recent range. Daily trendline resistance lurks at 1025 and looks to be the next hurdle topside â€ 1032 all-time high above there. Silver remained firmly above 17.00 and traded as high as 17.30 in the span. The 2009 high at 17.66 is important resistance near-term while trendline support rests by 16.56 as well. Oil was no slouch, adding nearly $2 to just below the $71 mark. BCO/USD was bid on comments from Saudi Arabian Oil Minister Ali al-Naimi who noted increasing demand on the back of the recovery in the global economy.
The highlight in the upcoming Asia session is New Zealand GDP. The consensus is for a -0.2% quarterly decline in 2Q after a -1.0% drop prior. Better results should see Kiwi move higher, similar to the positive reaction on the improved current account balance last night. Immediate resistance lurks at the 0.7245 nearby highs while a dip below 0.7160 would be problematic for the pair.
Upcoming Economic Data Releases (Asia Session) prior expected
9/22 22:45 GMT NZ GDP QoQ 2Q -1.00% -0.20%
9/22 22:45 GMT NZ GDP YoY 2Q -2.70% -2.60%
9/23 1:00 GMT AU DEWR Skilled Vacancies MoM SEP 1.00% - -
9/23 2:00 GMT NZ Westpac McDermott Miller Consumer Confidence