Asian Session Recap – May 8, 2014

  • Australia employment change up by 14.2K in April
  • Australia’s jobless rate held steady at 5.8%
  • Chinese trade surplus larger than expected at 18.5 billion USD
  • Swiss CPI and SECO consumer climate index due
  • ECB to sound dovish or announce easing measures?
  • BOE interest rate decision scheduled today

Surf’s up for the Aussie! The Australian currency was able to catch a bullish wave in today’s Asian trading session after the Land Down Under printed a stronger than expected jobs report. Employment was up by 14.2K in April, higher than the estimated 7.5K increase, while the March figure enjoyed an upward revision. The country’s jobless rate held steady at 5.8% instead of rising to 5.9% as analysts predicted.

On top of that, the larger than expected Chinese trade surplus provided a boost for the Australian dollar. China printed an 18.5 billion USD surplus, which is larger than the estimated 15.2 billion USD reading and the previous 7.7 billion USD surplus, reflecting an improvement in trade activity. AUD/USD jumped above the .9350 while AUD/JPY rallied above the 95.00 major psychological level hours after the release.

In the next few hours, we’ll see Switzerland’s SECO consumer climate index along with its CPI for April. The main events for today’s London session are the interest rate statements from the BOE and the ECB, with the latter expected to acknowledge recent weaknesses in the euro zone economy and possibly implement additional easing measures. If extra volatility ain’t your cup of tea, better stay on the sidelines during these events but don’t forget to take note of how forex pairs reacted.

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U.S. Session Recap

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