Asian Session Recap – June 2, 2014

  • Chinese banks on holiday today
  • Chinese manufacturing PMI up from 50.4 to 50.8
  • Australian April building approvals down by 5.6% vs. estimated 2.1% gain
  • Australian March building approvals revised from -3.5% to -4.8%
  • Australia’s company operating profits up by 3.1% in Q1
  • Japan’s final manufacturing PMI unchanged at 49.9
  • Japan’s capital spending up by 7.4% in Q1
  • Nikkei records 2.07% gain for the day
  • German preliminary CPI to show 0.1% uptick in price levels
  • U.K. manufacturing PMI, Swiss SVME PMI due

The Aussie sure knows a thing or two about going down under! After gaining ground on the heels of a Chinese manufacturing PMI improvement from 50.4 to 50.8, a weaker than expected Australian building approvals report pushed AUD/USD lower by more than 50 pips and AUD/JPY to a low of 94.33.

For the month of April, building approvals showed a massive 5.6% decline versus the estimated 2.1% gain while the previous month’s reading was revised to show a 4.8% drop. On the flip side, Australian company operating profits recorded a 3.1% rise in Q1, higher than the projected 2.6% increase.

Over in Japan, the manufacturing PMI for May was maintained at the initially reported 49.9 reading, down from the previous 53.9 figure. This reflected a contraction in the industry, but it wasn’t enough to keep the Nikkei from recording a 2.07% gain for the trading day. After all, Japan reported a stronger than expected 7.4% gain in capital expenditure for the first quarter. USD/JPY jumped to a high of 102.07 early in the Asian session but sank to a low of 101.93 later on.

In the next few hours, we’ll see Germany’s preliminary CPI reading, which is expected to show a 0.1% rebound in price levels from the previous 0.2% decline. A negative reading could lead to a euro selloff though, as it would spell weak prospects for the region’s CPI forecasts, which could be a crucial factor in determining whether the ECB would ease in their rate statement this week or not.

Also due today is Switzerland’s SVME PMI, which might dip from 55.8 to 55.7, and the U.K. manufacturing PMI, which could also show a small decline. Bear in mind that weaker than expected readings might force either the franc or the pound to return some of their recent gains. Good luck and good trading!

 

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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