Asian Session – Dollar hurt by low US consumer confidence
February 26, 2014 7:43 am
There was little action again in the Asian session. Weak US consumer confidence data offered little encouraging signs for a strong economic outlook in the United States.
The Conference Board survey showed consumer confidence in February fell to 78.1 versus 80 forecast and 79.4 previous. Other data showed US home price gains slowed in December.
Meanwhile there were comments from the Fed policy maker Daniel Tarullo yesterday who said that monetary policy is a possible tool to deal with broad sustained systemic risk and that there was no need to change monetary policy at the moment. This signaled low interest rates could remain for longer.
The dollar opened the Asian session at 102.22 yen after declining throughout the US session on the back of the weak US data. A rebound was made in the Asian session to 102.29, with the dollar finishing up 0.07%.
Data released in during the Asian session consisted of Australian construction sector data. Fourth-quarter total construction fell 1.0% on the quarter while engineering construction was down 0.5%. Also weighing on the aussie lately was the weaker Chinese yuan.
The aussie finished the session flat against the greenback at 0.9020, recovering from a dip to 0.8967 after the data.
The euro barely moved yet again in Asia and was stuck in a range against the dollar between 1.373 and 1.3748 for the entire session, ending at 1.3742.
Sterling traded a 1.6669-85 range against the dollar, ending up 0.02% at 1.6683. The pound fared better against the yen, gaining 0.11% to 170.65. Yesterday the pound rallied after comments by Bank of England policy maker McCafferty that the UK could raise interest rates 2015.
Revised GDP for the UK will be released in the European session today and US new home sales in the US session.
There was little action again in the Asian session. Weak US consumer confidence data offered little encouraging signs for a strong economic outlook in the United States.
The Conference Board survey showed consumer confidence in February fell to 78.1 versus 80 forecast and 79.4 previous. Other data showed US home price gains slowed in December.
Meanwhile there were comments from the Fed policy maker Daniel Tarullo yesterday who said that monetary policy is a possible tool to deal with broad sustained systemic risk and that there was no need to change monetary policy at the moment. This signaled low interest rates could remain for longer.
The dollar opened the Asian session at 102.22 yen after declining throughout the US session on the back of the weak US data. A rebound was made in the Asian session to 102.29, with the dollar finishing up 0.07%.
Data released in during the Asian session consisted of Australian construction sector data. Fourth-quarter total construction fell 1.0% on the quarter while engineering construction was down 0.5%. Also weighing on the aussie lately was the weaker Chinese yuan.
The aussie finished the session flat against the greenback at 0.9020, recovering from a dip to 0.8967 after the data.
The euro barely moved yet again in Asia and was stuck in a range against the dollar between 1.373 and 1.3748 for the entire session, ending at 1.3742.
Sterling traded a 1.6669-85 range against the dollar, ending up 0.02% at 1.6683. The pound fared better against the yen, gaining 0.11% to 170.65. Yesterday the pound rallied after comments by Bank of England policy maker McCafferty that the UK could raise interest rates 2015.
Revised GDP for the UK will be released in the European session today and US new home sales in the US session.
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