Forex Daily Recap – Volatility Action Coming Back In The USD/CAD Pair

USD/CAD

After two-days extended range-bound pair movement, the loonie finally showed high volatility. The USD/CAD maintained steadiness during the day but was seen slumping later the day.

On Monday, Bank of Canada Governor Stephen Poloz commented regarding the recent economic data directing the slowdown in domestic growth to be temporary.

The Crude Oil price surge making it reach new highs had already started undermining the par during the Asian session. Below expected both Canadian and the US, March Market Manufacturing PMI affected the pair movement deeply. Disappointing US Retail Sales Report further gave an impetus to the pullback of the loonie pair to the lowest level of 1.3300 levels before bouncing off.

USD/JPY

Today, the USD/JPY touched both the upper and lower vicinity of the chart. The pair rose slightly in the Asian session, tumbled during the European session and skyrocketed in the North American trading window. The safe-haven pair displayed some great movements during the day following the release of various Japanese data reports, the US related significant events, and other global cues.

The Japanese Tankan index revealed poor economic activity in the fourth fiscal quarter mainly due to the manufacturing sector. And these weak results were pretty expected as demand for Japanese exports had fallen for a couple of months. On the US release front, both the retail sales and core retail sales recorded below than market expectations. The USD/JPY recorded the highest jump from 110.87 to 111.44 level.

USD/CNY

The Yuan pair was seen recovering last day’s heavy losses in the morning session after the report of positive Caixin/Markit PMI data. The PMI recorded shown 50.8 for the month of March which was well above the market expectation of 49.9. This positive March figure helped the Chinese stocks reach new heights, but the Yuan currency was left unlifted much. The softening of the US-Sino Trade also bolstered the USD/CNY during the day. Chinese Vice Premier Liu He had mentioned that he would have a meet up with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin for more trade talks.

EUR/USD

The Euro pair opened on Monday morning near 1.1223 level. The start was quite intriguing. The pair shot up reaching 1.1249 level following Spain’s above consensus March Markit Manufacturing PMI of 50.9 points. The EUR/USD, however, couldn’t sustain at those high levels for an extended period.

March Consumer Price Index (CPI) and Core CPI both recorded lower than the market expectation. Upbeat US March ISM Manufacturing PMI reported 55.3 points, 1.5 percent above the consensus estimate of 54.5 points. This positive US report worsened the pair plunge drastically making it drop from 1.1250 level to 1.1203 level.

AUD/USD

The AUD/USD pair was seen to fall back near the lower support area in the North American trading session regardless of having many above-the-expected positive reports during the day. National Australia Bank’s March Business Conditions was 5 points up than the consensus estimate of 2 points. RBA Commodity index SDR YoY for March reported 11.0 percent higher than the market expectation. The AUD/USD bounced off near the 0.7115 vicinities twice during the day.