{"id":144974,"date":"2019-04-03T09:29:27","date_gmt":"2019-04-03T13:29:27","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=144974"},"modified":"2019-04-03T09:29:27","modified_gmt":"2019-04-03T13:29:27","slug":"usd-down-ahead-of-us-ism-non-manufacturing-reading","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/usd-down-ahead-of-us-ism-non-manufacturing-reading\/","title":{"rendered":"USD Down Ahead Of US ISM Non-Manufacturing Reading"},"content":{"rendered":"
April 3, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Over the European morning on Wednesday, moves in cross-asset markets were predominantly driven by growing expectations of a trade deal between the US and China.<\/p>\n

USD Lower On Safe Haven Outflows<\/strong><\/h2>\n

The US Dollar softened a little over early trading. It\u00a0conceded some of its recent gains<\/strong>\u00a0despite a better than expected durable goods release yesterday which printed -1.6% vs -1.8% expected. The selling is most likely safe haven outflows, given the better risk appetite seen across markets today. USD has been the preferred safe haven of choice recently though the index has traded back to 96.56 as of writing today on these current risk flows.<\/p>\n

EUR Shrugs Off ECB Dovishness For Now<\/strong><\/h2>\n

EURUSD is benefitting from the bearish drive in USD<\/strong>. Despite dovish ECB expectations and concerns about eurozone economic growth, EURUSD is managing to stay above the 1.1174 level support. It has traded to highs of 1.1247 as of writing. A light European data calendar today leaves the focus on data due over\u00a0the US session later with ISM Non-Manufacturing as the headline print,<\/strong>\u00a0expected to come in at 58 from 59.7 prior.<\/p>\n

GBP Higher Despite Softer UK Data<\/strong><\/h2>\n

GBPUSD has\u00a0also\u00a0traded higher today, benefiting from a\u00a0weaker US Dollar despite data disappointment.<\/strong>Services and composite PMI readings both came in lower than expected for March, highlighting the negative impact from ongoing\u00a0Brexit uncertainty<\/a>. GBPUSD has traded firmly higher off the 1.30 level support making its way back to 1.3179 at the time of writing.<\/p>\n

Risk Appetite Improves On US\/China Trade Deals<\/strong><\/h2>\n

Equities prices continue to surge higher<\/strong>, driven by growing expectations of a trade deal between the US and China. Delegates from both sides are due to meet today for a further round of talks with sources reporting that a deal is very close. However, some\u00a0key issues do remain<\/a>. SPX500 has now broken strongly above the 2860.11 resistance with clear water now up to the all-time highs at 2940.69.<\/p>

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Gold Higher on Weaker USD<\/strong><\/h2>\n

Despite better equities prices,\u00a0gold has managed to post a second consecutive bullish day<\/strong>\u00a0so far today. It has traded up to highs of 1292.91 on USD weakness. USDJPY, meanwhile, remains in the green, trading up to 111.57 as BOJ dovishness keeps JPY pressured.<\/p>\n

AUD Higher on Chin Proxy Trade<\/strong><\/h2>\n

AUD has been a\u00a0strong beneficiary of trade deal optimism<\/strong>\u00a0with price almost eclipsing yesterday\u2019s negative day. With Australia being China\u2019s largest trading partner, AUD is often used as a proxy for trading China news, typically performing strongly on positive headlines. AUDUSD traded highs of .7121 over the European morning as of writing.<\/p>\n

Oil Higher on OPEC Expectations<\/strong><\/h2>\n

Optimism around a potential\u00a0US\/<\/strong>China trade deal is also keeping oil prices firmly bid<\/strong>, alongside continued OPEC production cuts and expectations that current production cuts could be extended further. Oil prices are now sitting further above the 61.89 level, trading highs of 63.01.<\/p>\n

CAD Rises on Stronger Oil<\/strong><\/h2>\n

The Canadian Dollar has clearly\u00a0benefited<\/strong>\u00a0from this combined rise\u00a0in oil prices<\/strong>\u00a0and weakness in USD with USDCAD trading down to lows of 1.3301 as of writing with further downside likely if we see today\u2019s US data print below expectations.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Over the European morning on Wednesday, moves in cross-asset markets were predominantly driven by growing expectations of a trade deal between the US and China. USD Lower On Safe Haven Outflows The US Dollar softened a little over early trading. It\u00a0conceded some of its recent gains\u00a0despite a better than expected durable goods release […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-144974","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=144974"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144974\/revisions"}],"predecessor-version":[{"id":144983,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144974\/revisions\/144983"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=144974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=144974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=144974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}