Mar 4th 2016: Dollar Steps Back as Economy Falters

• This morning, the US dollar remains under pressure after a set of underwhelming economic data points yesterday. Unemployment claims and revised non farm productivity came in well below expectations, while factory orders also disappointed. This data has added to the weight of speculation that a second US rate hike will be deep into 2016, if not 2017.

• Elsewhere, the New Zealand dollar is enjoying some buying interest despite Australian retail sales falling below expectations. The Aussie is still on the rise, but lagging the Kiwi.

• The euro enjoyed a strong day yesterday as the dollar weakened and is out-performing the pound slightly this morning.

• Elsewhere, gold holding and building on recent gains.

Coming up today: 

• Today’s big item is of course US Non Farm Employment change due at 13.30, with a big gain of +195k expected. At the same time we get US average hourly earnings, trade balance and unemployment figures.
• Corresponding Canadian employment data is released at the same time, with Ivey PMI at 15.00.

Trade Idea: 

• The New Zealand dollar is set to test the high of the recent trading range and there could be a pop if the latest US data comes in below estimates.

• A good way to play this is a ONE TOUCH trade predicting that the NZD/ USD touches 0.6950 within the next 14 days for a potential return of 149%.

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