US Durable Goods Orders is usually an economic report that impacts FX markets. Not today. July Goods orders fell 6.8%, worse than the -6.0% forecast and well below the June gain of 6.4%. Durable Goods, ex-transportation beat forecasts and rose 0.5% Traders seemed to view it as a wash, and the dollar barely moved.
The dollar barely moving, was the theme overnight. The Jackson Hole Symposium put the brakes on FX markets due to the risk from speeches by Fed Chair Janet Yellen and ECB President Mario Draghi. Many bank economists and strategists do not believe that either official will make any major revelations
Asia FX markets were quiet. USDJPY traders dismissed Japan inflation data left the currency to wallow in a 109.50-76 range.
AUDUSD slowly drifted higher, reaching 0.7918 in New York trading. NZDUSD managed to reach 0.7227 just before New York opened and then declined to 0.7210. Both moves were well inside this week’s range.
German GDP and IFO data didn’t spark much interest in EURUSD. The single currency bounced in a 1.1770-1.1830 range and is currently hovering just above 1.1800.
Sterling rallied from 1.2795 to 1.2838 in another “nothing” move as the currency is well inside this week’s range.
Oil prices see-sawed in a $47.52-$47.85 range with traders content to stay close to home while refineries along the US Gulf Coast deal with Hurrican Harvey.
USDCAD is offered. The break below 1.2520 targets 1.2460 although support at 1.2505 is proving sticky at the moment.
USDCAD Technical outlook:
The intraday USDCAD technicals are bearish. A break below the 1.2500-05 area will extend losses to 1.2460 and then 1.2415, leaving the 1.2270-75 area as a “stretch” target. A break of 1.2560 will lead to 1.2610. For today, USDCAD support is at 1.2500, 1.2460 and 1.2415. Resistance is at 1.2550, 1.2590 and 1.2610
Today’s Range 1.2460-1.2560
Chart: USDCAD 1 hour