In the US forex session, it was all about waiting for the big release of the day, the advance GDP data followed later by new home sales and of course PCE. Ironically, it wasn’t GDP which really rattled the markets, but new home sales and the PCE data. The first came in far worse than expected and the second suggested a slow down in personal spending. The PCE data is one which is closely watched by the FED and this apparent slow down will have convinced them further, that far from raising interest rates this was strong enough to signal a rate cut.
The currency heatmap was once again in focus as we monitor the EUR/AUD and the USD/CAD. Both at extremes on the ranking ladder of the currency heatmap and therefore potential trading opportunities. But which is the better choice? And here is was the 4 hour chart in focus for the EUR/AUD which told its own story with a volatility candle and inside day reaction.