Top Market Movers: NZDUSD, EURJPY, EURCAD

NZDUSD

Traders Bid Dollar On Improving Data

The Kiwi major opened up higher above the trading range witnessed in the European session with the New York session opening up at 0.6396. Attributed to short term rise were bigger players triggering stops and fresh AUDNZD cross selling bolstering the major in light of optimistic U.S. based data.

Consumer spending and higher incomes sparked speculation of a continued bias by the Federal Reserve as manufacturing activity was also higher in the month of April. Rising above the 55.2 seen last month, the ISM activity rose to 57.3. Suggestive of further growth the surveys, along with higher inflationary indications, lent to some dollar strength heading into the afternoon.

Economic data runs quiet till Wednesday's money supply data. For the record, inflationary pressures continue to weigh on the economy and any increases at the supply level look to spark further speculation on higher rates above the already 7.25 percent, lending to some bullish bias. Otherwise, dollar major interest continues to be surrounded by multiple speeches by related governors in the US.

Rumorville

Further bids continue to hover at 0.6350 and 0.6360. Stops correspond slightly below about 10 pips with current selling residing near the pair's high at 0.6425.

EURJPY

Yen Bidding On Quiet Week

Triggering stops on the May Day holiday, speculation rode the price action for the Euro major leg higher on further anti-dollar bidding. However, the cross currency was led lower on further speculation of stalled rate in the U.S. counter the Yen.

This morning saw the Financial Times noting that the labor force in Japan had risen for the first time in eight years, prompting speculation of interest rate hikes in the near term. Earlier expectations had pitted a rise in the current zero interest rate policy by 25 basis points as late as November. However, with economic data remaining strong and showing support from several factors in Japan, consensus is expecting a decision as soon as mid summer.

Nonetheless, previous short covering in the USDJPY persists heading into Asia on better economic data in the world's largest economy. Subsequently, with Golden Week upon us, trading looks to be muted in the Asian session with only a spate of Japanese economic data on tap for the market. Looking forward, auto sales are looking strong.

Rumorville

Selling pressure persists with interest at the session high of 143 and above at 143.10. No bidding on profit taking look imminent.

EURCAD

Canadian Dollar Propped Up On Higher Oil

Canadian buying dominated the session, pushing the underlying spot currency pair through to test 28 year lows. Attributed to the bidding interest on the Canadian denomination were higher crude oil prices and climbing inflationary suggestions amid the broader day trend of dollar selling. Coincidentally, the bidding spilled over into the EURCAD currency cross with the pair ranking as the highest percentage mover on the day.

In afternoon trading, crude oil was seen higher by $1.82 to $73.70 on increasing tensions with Iran and speculated UN sanctions. Gold, subsequently, closed higher above the $660 continuing the upward trend and rising speculation of a definitive test of the $700 round figure.

Further momentum looks to keep the Canadian dollar bid against the euro in the near term with dealers noting a large working $500 billion short order in the afternoon pushing the thin market lower. Looking ahead, budget details are expected with a 1 percent tax cut anticipated.

Rumorville

Bids are emerging at the 1.1120 levels with more interest building near the figure. Comparative selling looks heavy at 1.1150 and above again at 1.1180.