Asian Session Recap – March 18, 2014

  • RBA minutes: Cash rate could remain at current levels “for some time”
  • RBA minutes: AUD remains high by historical standards
  • Nikkei closes up by 0.94% at 14,411.27

The major currencies visited Chopsville during the Asian session as the lack of major data took its toll on volatility. Also, word around the hood is that traders aren’t committing to big positions ahead of the FOMC statement.

The Aussie saw some action early in the session after the RBA printed its monetary policy meeting minutes. The Aussie popped higher when the RBA hinted that it’s done cutting rates for now, but soon erased some of its gains when the central bank also repeated its sentiment that the Aussie is still “high by historical standards.”

The other major currencies weren’t so lucky in the volatility department. European currency pairs like EUR/USD and GBP/USD stayed in tight 20-pip ranges while comdolls pairs like USD/CAD and NZD/USD also didn’t see action. Keep an eye out for the yen crosses, as they look like they’re falling across the board after staying in tight Asian session ranges.

The euro will likely take the spotlight in today’s London session as the euro region is expected to print Germany’s wholesale price index at 8:00 am GMT, Italy’s trade balance numbers at 10:00 am GMT, and Germany and the euro zone’s ZEW economic sentiment and EZ trade balance numbers all at 11:00 am GMT. The reports are generally expected to come in better numbers than last month, but keep an eye out in case a disappointing report weighs on the common currency!

See also:

U.S. Session Recap

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