Asian Session Recap – February 20, 2014

  • NZ quarterly PPI input slips by 0.7% vs. -0.9% estimates
  • NZ quarterly PPI output misses at -0.4% vs. +1.4% estimates
  • NZ ANZ job ads up 2.8% vs. 0.7% last month
  • Japan trade deficit hits record high at 2.79 trillion JPY
  • PBoC sold 60 billion yuan worth of 14-day repos
  • China HSBC flash manufacturing PMI at 48.3 vs. 49.5
  • Nikkei closes down 2.15% at 14,449.18

We saw a jam-packed Asian session today with New Zealand, Japan, and China all making headlines. New Zealand’s mixed data mostly affected the Kiwi’s price action but Japan and China’s reports set the tone for the Asian equities.

Japan’s trade deficit printed its record high today as import costs surged on the back of a weak yen. As a result, Nikkei closed 2.15% down from yesterday and major yen pairs like USD/JPY, EUR/JPY, and GBP/JPY are at least 50 pips below their Asian session open prices.

China’s HSBC manufacturing PMI also disappointed its expectations when it came in at 48.3 against analyst estimates of 49.5. The move weighed on comdolls like the Aussie to the tune of 50 pips before market geeks explained that the miss is likely due to the 7-day holiday that corporations and SMEs took at the beginning of February.

The day’s not over yet! In a few hours we’ll see monthly inflation and manufacturing and services PMIs from France, Germany, and the euro region. The reports don’t usually cause much ruckus on their own but they can cause intraday trends for the euro if most of them exceed or miss expectations. The reports will be released from 7:45 am GMT to 9:00 am GMT. Watch your euro trades closely during these times!

See also:

U.S. Session Recap

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