Daily FX Trading Update: Australian CPI Disappoints, FOMC and RBNZ Next – Oct 28, 2015

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Daily FX Trading Update: Australian CPI Disappoints, FOMC and RBNZ Next - Oct 28, 2015
USD
The US dollar was all over the place in recent trading sessions, as it functioned as a counter currency. Data from the US economy came in mostly weaker than expected, with core durable goods data, flash services PMI, and the CB consumer confidence index landing short of consensus. Traders might’ve also booked profits ahead of the FOMC statement later today, as this could spark huge moves across dollar pairs.
EUR
The euro struggled to keep its head above water yesterday since there were no reports to neither give it a boost nor push it lower. For today, the German import prices data and GfK consumer climate index are up for release, with another batch of weak readings likely to allow the selloff to resume.
GBP
The pound was in a bit of a weak spot yesterday since the UK printed a weaker than expected preliminary GDP reading. The economy expanded only 0.5% in Q3, slower than the estimated 0.6% growth and the previous 0.7% expansion. There are no reports due from the UK today.
CHF
The franc was able to hold its ground in recent trading sessions, as the lack of top-tier data kept both gains and losses in check. There are still no reports due from the Swiss economy today, leaving market sentiment in control of price action among the franc pairs.
JPY
The yen stayed strong yesterday since risk appetite appeared to weaken. Earlier today, data from Japan showed a 0.2% decline in retail sales instead of the estimated 0.4% uptick, setting the stage for weaker reports later this week. No other reports are lined up for today.
Commodity Currencies (AUD, NZD, CAD)
The comdolls gave up ground earlier when Australia printed a bleak CPI reading of 0.5% versus the projected 0.7% figure for Q3. The RBNZ statement is coming up next, just after the FOMC decision, and no interest rate changes are expected for now. Reassuring remarks from Governor Wheeler might also be enough to keep the Kiwi afloat.
To contact the reporter of the story: Samuel Rae at samuel@forexminute.com
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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.