Forex Daily Recap – USD Index Fell 0.5% over Lowest PMI figures since September 2009Positive Chinese PMI data strengthened the AUD & NZD. The Crude Oil prices remained in the lower price range of $52.50/54.50 bbl amid trade tensions and recession fears. Fiber took a back seat and kept rising over USD Index slump.
The Greenback had started slumping since May 31 over Fed rate cut fears. The market expected such a rate, seeing the rising 3M-10Y Yield Curve. Today, the Index opened up near the 97.62 bottom levels. In the earlier hours, the USD Index made a good upturn pleasing the investor community. The Index had reached near 97.80 levels or 0.18% up, marking the daily high. However, the weak Greenback failed to hold the morning gains for long and lost over in-line Euro-specific data.
Adding to the sour sentiment, the US May Markit Manufacturing PMI reported 50.5 over 50.6 estimates. The Index dropped further as ISM May Manufacturing PMI also missed forecasts. Though ISM May Prices Paid recorded 2.3% higher than the market expectation of 52 points, the Buck continued the downtrend. The USD Index marked the day’s low near 97.49 levels. Any fresh headline from the US-China trade front would have impaired the Buck more severely.
The Aussie pair made a grand opening near 0.6940 levels conquering fresh monthly highs. The pair continues to stay in uptrend mode since the last day of May. Few lower-than-expected AUD data came out in the early hours. TD Securities May MoM Inflation reported 0.0% over last recorded 0.2%. Also, the Street analysts had hoped the Q1 QoQ Company Gross Operating Profits to report 0.2% higher than the prior 2.8%. Anyhow, actual reports came near 1.7% shocking the market. The pair kept on moving upwards despite such poor AUD events. The Antipodean received further elevation following the release of the Caixin May Manufacturing PMI data. The Chinese PMI reported 50.2 over 50.0 estimates, pushing the AUD/USD pair to 0.6958 levels. Laterwards there was a small correction in the pair’s performance. However, the Aussie pair rallied in the European session over Greenback weakness.
The USD/CAD pair followed the Greenback’s path and lost most of the last week accumulated gains in Monday’s session. After making the opening near 1.3514 levels, the USD/CAD pair kept plunging throughout the day. Canadian dollar shattered over trade concerns.
Trump’s latest 5% tariffs on all the Mexican goods coming to the US, created havoc among the Loonie Investors. However, any fresh headline on that front helped the pair to limit daily losses. On the events front, Canadian May Markit Manufacturing PMI reported 50.5 over 50.6 estimates. Further adverse reports from the US side sharply hammered the pair, making it drop near 1.3460 levels. Meanwhile, the Crude Oil prices remained in the lower price range of $52.50/54.50 bbl amid trade tensions and recession fears.
The Fiber sleeves up and heads north in the start of June as Greenback bows down. The EUR/USD pair marked the opening near 1.1173 levels and crossed the 1.1200 psychological level. Amid some sound reports, the pair touched the day’s high near 1.1221 levels in the evening session. Earlier the day, the Switzerland May YoY Consumer Price Index reported in-line with the market hopes of 0.6%.
Moreover, France, Germany, and the European Monetary Union also provided in-line Manufacturing PMI data this time. Notably, the Italian PMI data was quite above-the-consensus reporting near 49.7 over 48.6 forecasts. Falling USD Index provided an extra boost to the overall performance of the strong rival Euro.