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Dollar Recovers After NY Terror Attack

Rakuten Securities Australia

We had a couple of big events that moved the markets yesterday on what many had predicted to be a quiet start to the week. An attempted terrorist bomb attack in New York City during the commuter rush hour fortunately resulted in very low injuries and no fatalities but we did see some safe haven buying across the currencies. This has since been reversed as we enter the start of the Asian session and the dollar has drifted back to the top side.

Much earlier in the day the flightless bird found it’s wings as we had the announcement of the new RBNZ Governor Adrian Orr, this was seen as positive by the market and we saw the Kiwi jump 80 pips on the back of it for the day. His tenure doesn’t begin until March but this does take away some of the uncertainty that was present in the NZ market on that subject, especially with the new government having just come to power.

Looking ahead to today’s trading and we do have some fundamental economic data due today, first up in the Asian session we have the HPI and NAB Consumer Confidence numbers in Australia, then into the London session and all eyes will be on the CPI data at 8.30 pm (exp 3.0%), as usual any result away from expectation could see sterling off to the races. Into the New York session and we have the PPI numbers due out at 12.30 am with market expectation at 0.4%

The main focus of the week will of course be the Fed Meeting on Wednesday in the New York session and we’re not anticipating too much in the way of big moves ahead of this but traders will have noted that President Trump is due to speak on the Tax Reform Plan before the FOMC – we’ve had a couple of quiet-ish days on this subject so traders will be still monitoring the news wires closely for anything fresh on this subject.

Rakuten Securities Australia Review

Source: https://sec.rakuten.com.au/fx-insight/2017/12/12/dollar-recovers-ny-terror-attack/
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