Talking Points- US Dollar selling hits pause on mixed consumption figures.
- Australian Dollar, Japanese Yen begin retracing yesterday’s big moves.
- Calendar devoid of top of the line event risk until Asian session on Thursday.
Intraday Price Perspective
A scan of this morning’s best and worst performers via the Strong/Weak app shows that the US Dollar is squarely neutral over the past 24-hours, having been at the behest of the more volatile majors, the Australian Dollar and the British Pound. In fact, just yesterday was the GBP/AUD one of the worst performers in the market; today, it is the best on both the H4 and D1 timeframes.
Here’s the data keeping the US Dollar neutral the past rolling 24-hours:
- Advance Retail Sales (DEC): +0.2% versus +0.1% expected, from +0.4% (revised lower from +0.7%) (m/m).
- Retail Sales less Autos (DEC): +0.7% versus +0.4% expected, from +0.1% (revised lower from +0.4%) (m/m).
- Retail Sales Control Group (DEC) (used in GDP): +0.7% versus +0.3% expected, from +0.2% (revised lower from +0.5%) (m/m).
While there may be actionable trade setups forming in the European crosses – EUR/AUD, GBP/NZD, EUR/JPY, etc. – such price action has by and large been concentrated outside of the US Dollar, even in the wake of the usually market-moving US Advance Retail Sales report.
In the video, we identify the levels in the components of the USDOLLAR Index to watch for over the coming days to help determine which way the buck will break.
--- Written by Christopher Vecchio, Currency Analyst