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Forexlive Americas FX news wrap 3 Apr: ISM lowest since May 2020 | Forexlive

The ISM manufacturing index fell to the lowest level since the pandemic plunge (May 2020) with the major components all below the 50 level. Prices paid dipped below the 50 level to 49.2 after rebounding back above 50.0 last month to 51.3. Employment reached 46.9 which was the lowest since July 2020. A number below 50.0 is indicative of contractionary for the component. Below are the major components.

  • Prices paid 49.2 vs 51.0 estimate. Last month 51.3
  • Employment 46.9 vs. 49.1 last month
  • New orders 44.3 vs. 47.0 last month
  • Production 47.3 vs 47.3 last month
  • Order backlog 43.9 vs. 45.1 last month
  • New export orders 47.6 vs. 49.9 last month
  • Imports 47.9 versus 49.9 last month

The weaker ISM data sent the USD lower. The USD is ending the day as the weakest of the major currencies. The CHF and JPY was also mostly lower. Meanwhile, the AUD is the strongest the majors ahead of the RBA rate decision in the new trading day. The RBA is expected to keep rates steady. The AUD showed gains of over 1% vs the USD, JPY, and CHF.

For the USD, in addition to moving lower by -1.51% vs the AUD, the USD was down -0.71% vs the GBP, -0.64% vs the NZD and -0.66% vs the CAD.

The AUDUSD moved above its 100 and 200 hour MAs earlier in the day. Those MA stand at 0.6688 and 0.6700 respectively, but it was the move above the 200 day MA at 0.67509 which gave the buyers more confidence. THe price high reached to 0.67897, before consolidating into the close. The 100 day MA above cuts across near 0.6800 going into the new trading day. A move above would put buyers more firmly in control and take the price to the highest level since February 24.

The GBPUSD – which rose 0.71% – is closing near the session high and looks to test the high from December and January. There is a swing area between 1.24228 to 1.24458. The price is trading at 1.2417 heading into the close.

Yields moved lower in the US to help the dollars move lower:

  • 2 year is back below 4.00% or -9.2 basis points.
  • 10 year is down -7.3 basis points at 3.417%
  • 30 year is down -5.6 basis points at 3.632%

Crude oil prices closed sharply higher today after the surprise cut in output by OPEC. That sent crude oil of 6.38% to $80.50 currently. The USDCAD was also pushed lower as the flow of funds moved into the CAD helped by the price of oil moving higher. . The USDCAD is closing between the 100 day MA above at 1.3518, and the 200 day MA below at 1.3372. The current price is trading at 1.3436.

US stocks closed mixed with the Dow leading the way. The index was supported by Chevron and UnitedHealth today, but 22 of 30 stocks closed higher. The final numbers are showing:

  • Dow up 327.00 points or 0.98%
  • S&P up 15.18 points ro 0.37%
  • Nasdaq fell -32.46 points or -0.27% but closed near highs for the day and was down -135.38 points at the session lows.

Good fortune with your trading.