Asian Session Recap – February 24, 2014

  • China new home sales report weighs on the yuan
  • New Zealand credit card spending up by 1.0% in Jan. vs. 0.7% in Dec.
  • Moody’s upgrades Spain’s bond rating from Baa3 to Baa2
  • Nikkei closes down 0.19% at 14,837.68
  • German IfO business climate on tap

The major currencies started the week on the red side of the charts after a report from China sparked concerns for the country’s property market. Prices of new home sales in China has grown by an annualized rate of 9.6% in January.

The number isn’t too bad except when it’s compared to December’s 9.9% growth and we take into consideration that it’s the first time that growth has eased in 14 months. Not surprisingly, it sparked a bit of risk aversion and weighed on the yuan and even the commodity-related currencies.

The yen’s price action also got some attention. The currency weakened across the board at the start of the session but quickly saw profit-taking when China’s weak report coincided with technical resistance levels on the Nikkei and USD/JPY. Major yen pairs like USD/JPY, GBP/JPY, EUR/JPY, and AUD/JPY are now about 50 pips below their Asian session highs.

The only report scheduled during the London session is Germany’s IfO business climate numbers at 9:00 am GMT. The report is expected to clock in at 110.60 like last month but keep your eyes on other details, such as reports on business expectations and current conditions in case we see surprises.

See also:

U.S. Session Recap

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