Asian Session Recap – March 13, 2014

  • Japanese Key Machinery Orders m/m: 13.4% vs. 7.1% forecast, -15.7% previous
  • Australian Net Employment Change surprises to the upside: 47.3K vs. -3.7K previous; as expected, no change to unemployment rate: 6.0%
  • Chinese Industrial Production y/y ticks lower: 8.6% vs. 9.5 forecast, 9.7% previous
  • Chinese Retail Sales also slightly lower y/y: 11.8% vs. 13.5 forecast, 13.1% previous

The Asia session saw the forex markets moving thanks to both tier 1 and tier 2 events from the Comdolls.

The Kiwi is still on a tear higher after the RBNZ raised interest rates to 2.75% from 2.50% late in the U.S. session.  It was a pretty big deal as New Zealand is the first major economy to raise rates three years, with rhetoric that there will be more tightening this year. Even after a running out of a little bit of steam mid-session, the New Zealand dollar is still upon the day against its major counter parts: NZD/USD is up 48 pips (+0.57%) to .8569, NZD/JPY is up 34 pips (+0.40%) to 87.88, EUR/NZD is down 40 pips (-0.24%) to 1.6263.

The Australian Dollar is blazing trails higher as well thanks to a very positive surprise in the net employment change down under.  The positive read was the highest in almost a year, spurring traders to buy up the Aussie big pips on the session: AUD/USD is up 71 pips (+0.57%) to .9057, AUD/JPY is up 60 pips (+0.65%) to 92.92, AUD/NZD is up 35 pips (+0.34%) to 1.0572.

Coming up for the morning London session, we’ve got French inflation data, which is expected to tick higher than previous reads.  If so, this should add further support for the Euro, which has been up against the majors all week. The afternoon London session should provide the bigger potential catalysts with U.S. and Canadian data, most notably the U.S. retail sales data which is expected to come in better-than-previous at 0.2% vs. -0.4% previous.  Stay frosty!

See also:

U.S. Session Recap

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