Asian Session Recap – February 5, 2014

  • Australian Prime Minister Abbott wants to boost the country’s jobs and wages
  • Nikkei ends with 1.23% gain
  • Japanese average cash earnings up by 0.8% vs. 0.7% estimate
  • Spanish and Italian services PMIs up for release
  • U.K. services PMI to improve from 58.8 to 59.1

Risk appetite peeked back in the markets in today’s Asian trading session, as a few positive economic updates were released. Japan’s Nikkei index closed with a 1.23% gain for the day, thanks to the better than expected average cash earnings increase of 0.8%, allowing yen pairs to stay afloat.

Meanwhile, in the Land Down Under, Prime Minister Abbott mentioned in his speech that he plans on boosting the country’s jobs and wages. He added that he would like to see a strong improvement in productivity as well.

In the next few hours, we’ll see services PMI from Spain, Italy, and the United Kingdom. Small improvements are expected, which might be enough to keep the euro and the pound afloat against its major counterparts for the London session. Weaker than expected results, on the other hand, could usher in broad risk aversion and trigger another round of declines for higher-yielding currencies.

See also:

U.S. Session Recap

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