Dollar Struggling To Find Friends Despite Better Data

We continued to see both the equity and commodity markets drive higher in yesterday’s sessions but the dollar is still struggling to make any ground despite better numbers once again out of the states. As we enter the start of the Asian session the dollar index is once again looking at fresh lows beneath the short term support currently coming in around 91.80. This despite the ADP Non Farm numbers coming out much stronger than expected at +250k last night.

Euro is once again toying with key levels around 1.2100 and the commodity currencies continue to grind their way higher finding good support on any dips with CAD being a bit more subdued ahead of a raft of Canadian economic data later today.

We expect to see fairly subdued markets today ahead of the key US Non Farm Payrolls data release later in the day with the currencies sticking to relatively tight ranges. There is a bit of a risk of us seeing some profit taking flows across the majors but that’s probably receded a touch given the markets reaction to last night’s data.

It’s another quiet day in Asia with just the Australian Trade Balance data out to trouble to scorers (pardon the pun, but I am off to the Ashes in a while!) but we do have some good tier 1 date out in London in the form of the Euro CPI Flash Estimate before we get to the main business of the day and the NFP’s.

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