Forex today: antipodeans outperform, dollar mixed, US data misses yet again

Forex today was a come back in the antipodeans while US data disappointed yet again ahead of further key releases later in the week for the US economy. 

The US dollar was higher by just 0.06% at 99.13 with a range of 98.88-99.20 at the time of writing. Yields were higher by 1.74% at 2.1398 and within a range of 2.2767-2.3360 at the time of writing; a positive start and back above the 2.3% psychological level setting the stage for a stronger dollar this week ahead of the Federal Reserve that meets on Wednesday. 

The euro was struggling on the 1.09 handle for the best part of the US session, capped by the 1.0920 resistance with an overnight low of 1.0883 and high of 1.0924. Sterling was the worst performer of the G7's, dropping from 1.2959 to 1.2885 while the cross in EUR/GBP benefitted and ran up half a cent to 0.8460 highs. The Yen was traded between 111.20/94 and offered vs the greenback for the best part of the session. Gold dropped to three week lows. The antipodeans rallied vs the US dollar with the Aussie up from 0.7644 to 0.7541 and the Kiwi climbed from 0.6849 to 0.6924. 

US data disappoints

Data in the US had personal income that rose by 0.2% in March, missing expectations of 0.3%. Personal spending was flat while the core PCE price index fell by 0.2% while the year-on-year reading came in below prior at 1.8% vs 2.1%. Markit manufacturing PMI for April arrived at 52.8 and ISM manufacturing PMI came in at 54.8, below March's 57.2. With eye son the Fed this week, we had an early view of the US economy from the US Treasury Secretary Steve Mnuchin who said that it could take up to two years to have economic growth reach 3%.

The day ahead

For the Asian session, we have a number of key events starting with BoJ minutes, a speech from Bank of Japan's  Governor Haruhiko Kuroda, The Caixin China Manufacturing PMI and the RBA meeting. 

Key events in the US session 

• ISM: Sugar high is wearing off - Wells Fargo
• US Dollar consolidates in familiar range below 99
• NZD/USD bulls have sights on the 0.70 handle
• AUD/USD: taking on the 0.75 handle but capped at 0.7542
• Gold slips to fresh 3-week lows below $1260
• U.S. President Trump: I'm open to meeting with Kim Jong-Un - BBG
• Canada: Manufacturing PMI hits six-year peak in April - Markit
• US: April PMI registered 54.8, a decrease of 2.4 from March - ISM