Forex Daily Recap – The Greenback Lost Hold of 98.00 Top Levels on Weaker US Q1 GDP & PCE DataThe Aussie Q1 Producer Price Index & Export Price Index reported lower than the market expectation. The Japanese March YoY Housing Starts Data was 4.2% above estimates.
US Dollar Index
Today, the greenback lost hold of the 98 top levels. The pair plunged straight away 0.38 percent after the release of poor US Q1 GDP results. The US GDP reported 0.6 percent over the expectation of 1.3 percent.
Also, the US Personal Consumption Expenditures (PCE) Prices and Core PCE Prices for Q1 was below consensus. In the middle of such adverse reports, the US reported two positive events as well. Firstly, the US Annualized Q1 GDP came out 1.2 percent higher than the market expectation. Secondly, the April Michigan Consumer Sentiment Index reported 0.21 percent above the consensus estimation. Anyhow, the three negative results won over the two positive ones. The USD Index that computes the greenback against its rivals touched the day’s low near 97.86 levels. Post 15:00 GMT, the index appeared recovering the lost gains drifting around 97.97 levels.
The Euro pair extended its last day’s consolidation phase into today’s session. The pair continued to remain fluctuated in the range of 1.1130/40 levels. In the last couple of sessions, the EUR/USD remained silent amid a light euro significant economic calendar.
Investors went unnerved as the fragile pair was hovering near its 18 months low levels. However, there was a slight upliftment in the pair at around 12:30 GMT. More precisely, the EUR/USD got uplifted 36 pips marking fresh highs near 1.1171 levels. The pair went north amid weakening US Dollar Index. The greenback had fallen after the release of downbeat US Q1 GDP data. Here the consensus had taken a bearish stance on the US Q1 GDP Index. They expected a 0.6 percent decrease in the index this time, to the prior 1.3 percent.
Nevertheless, the index came around more 0.7 percent less than the estimates, reporting near 0.6 percent. Even the US Q1 QoQ Personal Consumption Expenditures Prices was 0.7 percent lower than the expectation. The EUR/USD limited gains as the US Annualized Q1 GDP data came out higher-than-expectation.
The USD/JPY pair attempted recovering after yesterday’s 0.81 percent drop. The pair stared during the Asian Session around the 111.55 levels. Later, the safe haven pair displayed a few corrections. Further, the pair collapsed and came back to the opening point 111.55 levels at 15:00 GMT.
The pair attempted corrections after the USD Q1 Annualized GDP event came out positive. This GDP went highly bullish and reached near 3.2 percent than the previous 2.2 percent. However, the other US indexes for the day appeared bearish. The PCE, core PCE, and the GDP Price Index came out pessimistic. These events caused the USD/JPY pair to slip down. In the meanwhile, reports suggested that the US-Sino Trade Settlement will likely happen within two months period. This news further helped the USD/JPY pair to improve, reaching near 111.60 levels.
The AUD/USD pair opened up at the 0.7021 levels and kept towering above its opening line. The pair crossed the previous highest point 0.7049 levels. The Aussie pair recorded three corrective bounce, one at 0.7022 levels, second at 0.7033 levels and third at 0.7039 levels. The pair is currently trading at 0.7053 levels at 14:45 GMT. The Aussie specific events occurred deficient to the estimated numbers. The QoQ PPI lacked with 0.2 percent while the YoY PPI remained 0.1 percent deficit. However, the Import PPI improved with 1 percent, but the Export PPI remained unfavorable. The AUD/USD pair could not benefit much after the release of the above Australian PPI indexes.