Currency Trading Commentary: March 16

Currency Trading Commentary: March 16

Currency Trading Commentary: March 16

The greenback was broadly weaker in the overnight session, with traders instead bidding up riskier assets following a set of positive US economic data.

 

The Empire State manufacturing index rose from 19.53 to 20.21 in March – the highest since June 2010, whilst the Philadelphia Fed index rose from 10.2 to 12.5 in March – the highest since April 2011.

 

The acceleration in manufacturing activity was backed up by data showing new claims for unemployment insurance in the US fell by 14,000, to a 4-year low of 351,000 in the latest week.

 

The risk on trade saw money flow into the Aussie dollar, which rose against both the yen and US dollar.

 

After some initial weakness, the local unit has turned higher in today’s Asian session to be currently trading around US$1.0530.

 

The yen, which has been under heavy selling pressure in recent weeks, has also recovered in today’s session after the latest BOJ minutes failed to offer any hints of future monetary easing.

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