Asian Session Recap – March 20, 2014

  • NZ q/q GDP at 0.9% vs. 0.9% expected
  • Swiss trade balance shows 2.62 billion CHF surplus vs. 2.55 billion CHF previous
  • PBoC sets yuan reference rate to its 11-month low at 6.1460 USD
  • Nikkei closes down 1.65% at 14,224.23

Forex price action was as exciting as watching ice melt as traders refused to commit to positions after the Fed’s statement. Major pairs like EUR/USD, GBP/USD, AUD/USD, and even USD/JPY only moved by around 20-30 pips while volatility for yen crosses like EUR/JPY and GBP/JPY was only a bit better at 30-40 pips.

NZD/USD was hit by around 40 pips at early in the session after New Zealand’s quarterly GDP data just met investor expectations. Fortunately for the bulls, the selloff ended there and NZD/USD is now in consolidation mode around the .8535 area.

The lack of major news reports turned market attention to the yuan, which reached an 11-month low against the dollar after the PBoC set the yuan reference rate from up from 6.1351 to 6.1460. Still, the news had minimal impact on the comdolls so far as traders just aren’t making big trades after the Fed’s announcements.

Let’s see if we can get bigger moves from London session traders. At 8:30 am GMT the SNB will publish its interest rate decision and monetary policy assessment, which some traders expect to contain remarks that would drag the franc lower. Then, at 11:00 am GMT the U.K. will print its CBI industrial orders expectations, which is estimated to clock in a 5.0 index reading from its 3.0 previous figure.

Keep an eye out for these reports and be mindful of how they can affect your trades!

See also:

U.S. Session Recap

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