12 May 2015
USD recovers ground but commodity currencies outperform
FXStreet (Córdoba) - It was a quiet New York session in the absence of major economic events, with action in the bond markets influencing trading.
Widening spreads between German-US bonds helped to underpin EUR/USD higher. German 10-year Bund yields soared to a session high of 0.74% on Tuesday, while benchmark 10-year US Treasury yields hit 6-month highs of 2.3%, before reversing course and sliding to 2.26%.
The US dollar managed to take back some losses versus its European counterparts during the New York session, although it extended the fall versus commodity currencies.
EUR/USD pulled back from a high of 1.1278 but managed to hold above the 100-day SMA after breaking higher. GBP/USD steadied near 5-month highs just below 1.5700 while USD/CHF cut losses and ended 0.52% down near 0.9300, halfway back from lows.
The Australian dollar outperformed as fears of a rating downgrade faded after Moody’s and S&P said the country’s budget was in line with AAA rating. AUD/USD touched a high of 0.7999, but failed to break above 0.8000.
USD/CAD broke below 1.2000 and struck a 6-day low of 1.1977 helped by oil prices advance towards $62.00 a barrel.
US stocks ended slightly lower on Tuesday but off lows as Wall Street indexes recovered from a sell-off.
During the Asian session, the RBNZ will issue the Financial Stability Report while Governor Wheeler is due to speak. Japan’s trade data and Australia’s wage price index will be released along with Chinese Retail sales and industrial production data.
Widening spreads between German-US bonds helped to underpin EUR/USD higher. German 10-year Bund yields soared to a session high of 0.74% on Tuesday, while benchmark 10-year US Treasury yields hit 6-month highs of 2.3%, before reversing course and sliding to 2.26%.
The US dollar managed to take back some losses versus its European counterparts during the New York session, although it extended the fall versus commodity currencies.
EUR/USD pulled back from a high of 1.1278 but managed to hold above the 100-day SMA after breaking higher. GBP/USD steadied near 5-month highs just below 1.5700 while USD/CHF cut losses and ended 0.52% down near 0.9300, halfway back from lows.
The Australian dollar outperformed as fears of a rating downgrade faded after Moody’s and S&P said the country’s budget was in line with AAA rating. AUD/USD touched a high of 0.7999, but failed to break above 0.8000.
USD/CAD broke below 1.2000 and struck a 6-day low of 1.1977 helped by oil prices advance towards $62.00 a barrel.
US stocks ended slightly lower on Tuesday but off lows as Wall Street indexes recovered from a sell-off.
During the Asian session, the RBNZ will issue the Financial Stability Report while Governor Wheeler is due to speak. Japan’s trade data and Australia’s wage price index will be released along with Chinese Retail sales and industrial production data.