Euro major's strength on the session,consumer confidence in the region's largest economy rose better than… … expected.

Looking revived from previous pessimism on the September 18th election
uncertainty, confidence for the month of October rose to a reading of
3.4 compared with estimates of a 3.1 print, a five month high.
Attributed to the rise were several factors including improving economic
conditions and a resolution to the uncertainty that surrounded the
Merkel/Schroeder face off. However, now with Angela Merkel replacing
Gerhard Schroeder and the Grand Coalitiion formed, expectations still
remain over the possibility of much needed revision in current labor and
fiscal policies in Germany.

Momentum Shift
Paring back profitable positions, traders flipped previously short lots
on yesterday's speculation of rising interest rates in the Canadian
economy. As a result, taking into account the euro leg higher and
declining oil prices, Canadian weakness mounted on the session.
However, another potential move lower may occur as resurgence on
interest rate speculation looks to ensue after the industrial product
price report.

Technically Speaking
Bouncing off of the 1.4086 intrasession low, the price broke through
all three Fibonacci levels to the upside with considerable conviction.
Still feeding off of momentum, the cross looks to meet with resistance
at the 1.4250 figure. However, with waning momentum leading to a
potential consolidation, retracement remains a possibility. As a
result, traders should mind the 1.4203 near term support.

NZDUSD

Rising OCR
In a decision that lifted the currency markets through offshore
activity, Reserve Bank of New Zealand Governor Alan Bollard decided to
raise the overnight cash rate to 7 percent. Garnering calls of interest
overkill, the rate hike came on the heels of rampantly rising inflation.
Although potentially containing future price increase pressure, experts
are now estimating severe damage to the current rate at which the
economy is growing as higher interest rates may curb domestic demand.
Nonetheless, traders, loving the carry trade value, boosted the
underlying spot. Subsequently, reinforcing the theme was a high
interest in an issuance of NZD$350 million eurokiwi bonds overnight.

Technically Speaking
Additionally pushing through all three Fibonacci levels from the
intersession move, the Kiwi dollar looks to be pulling back, albeit
slightly, against the greenback major. As a result, currently hovering
the 38.2 percent fib level at 0.7049, further upside direction may be
capped granted the resistance at the day's high of 0.7091 holds.
However, most likely, given the consolidation in the price action, the
major could see a test of near term support at 0.7049 before upward
biased can be expressed.

USDCHF

Durable Goods Dip Doesn't Bode Well
In the early trading hours, the dollar was steadily losing value
against the swissie on bearish sentiment going into the morning's
release of US durable goods order data. The report of a 2.1% drop, much
sharper than the 1.1% expected by economists, caused a sharp fall which
the dollar soon recovered from. Aside from the initial shock, the news
wasn't actually that negative. The drop on total new orders for
durables goods was actually much smaller than the -5.4% seen in July. In
addition, business investment was apparently also fairly resilient with
a drop of 1.2% in nondefense capital goods excluding aircraft compared
to July's fall of 3.9% in the same category. On top of this, the
report also included a sizeable upward revision to August's numbers.
The mixed sentiment surrounding this release kept trading pretty much
directionless for the rest of the day.

Uncertainty Going Into US GDP
Although the lower-than-expected durable goods number was relatively
well received, this may not be the case if tomorrow's US GDP
disappoints as well. The GDP growth rate is expected to rise to 3.6% for
the third quarter, up from 3.3% the second quarter. However, just
looking at the two recent drops in durable goods orders alone, there
seems to be considerable downward risk into this expectation for
accelerating growth, thereby putting the dollar at risk as well.

Technically Speaking
Continuing on the three session decline, traders reflected bearish
sentiment on the dollar to push the Swissie higher on the day. Testing
the support at the 1.2700 figure, the underlying spot has begun to
consolidate with no directional bias at the moment. Should the 1.2700
figure hold, a retest of the previous support at 1.2795 would be
inevitable with a break below leading to a test of 1.2688 (the October
6th spike low.).

Sending money abroad? Converting currency?