DailyFX.com -
Talking Points:
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US Dollar corrects lower after Friday’s surge in the wake of firm CPI data
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Commodity currencies rise with S&P 500 futures as risk appetite recovers
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Overnight trends likely to carry forward but lasting follow-through unlikely
The US Dollar traded broadly lower overnight in a move that looked to be corrective following the surge triggered by better-than-expected CPI data on Friday. The yields- and sentiment-sensitive Australian, Canadian and New Zealand Dollars outperformed as S&P 500 futures rose and Treasury bond yields edged lower, seemingly reflecting moderation in the “hawkish Fed” narrative.
A quiet economic calendar in European and US trading hours suggests Asia-session trends may find few barriers to continuation. Significant follow-through seems unlikely however, with traders probably unwilling to commit to a firm directional bias ahead of this week’s pivotal monetary policy announcements from the Bank of Japan and the Federal Reserve.
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Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
| 22:00 | NZD | Westpac Consumer Confidence (3Q) | 108 | - | 106 |
| 22:30 | NZD | Performance Services Index (AUG) | 57.9 | - | 54.5 |
| 23:01 | GBP | Rightmove House Prices (MoM) (SEP) | 0.7% | - | -1.2% |
| 23:01 | GBP | Rightmove House Prices (YoY) (SEP) | 4.0% | - | 4.1% |
| 01:30 | CNY | China August Property Prices | - | - | - |
European Session
| GMT | CCY | EVENT | EXP | PREV | IMPACT | |
| 08:00 | EUR | Current Account SA (JUL) | - | 28.2b | Low | |
| 08:00 | EUR | Current Account NSA (JUL) | - | 37.6b | Low | |
| 08:00 | CHF | Total Sight Deposits (SEP 16) | - | 515.8b | Low | |
| 08:00 | CHF | Domestic Sight Deposits (SEP 16) | - | 438.6b | Low | |
| 09:00 | EUR | Eurozone Construction Output (MoM) (JUL) | - | 0.0% | Low | |
| 09:00 | EUR | Eurozone Construction Output (YoY) (JUL) | - | 0.6% | Low | |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
| EUR/USD | 1.0985 | 1.1085 | 1.1120 | 1.1185 | 1.1220 | 1.1285 | 1.1385 |
| GBP/USD | 1.2583 | 1.2833 | 1.2917 | 1.3083 | 1.3167 | 1.3333 | 1.3583 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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