Asian Session Recap – March 26, 2014

  • Lack of jawboning sends AUD higher
  • Nikkei closes up by 0.37% at 14,447.16

The Aussie was the star of today’s Asian session as RBA Governor Glenn Stevens took center stage. While Stevens had warned of the risks in rising home prices and the lack of inflationary pressures, market players had paid more attention to the positive things that he had to say.

For one thing, Stevens hinted that the Australian economy would soon turn to domestic consumption instead of being led by the mining sector. The central banker also believes that growth will strengthen in late 2014 and will pick up further in 2015. Last but definitely not the least, Stevens reiterated the RBA’s statements that a “period of stability” in interest rates is prudent for the time being.

The lack of jawboning sent AUD/USD to the .9200 handle while other Aussie crosses also experienced significant gains. Even NZD received a small boost as it’s trading around 20 pips higher than its open price. European currency pairs like EUR/USD, GBP/USD, and USD/CHF weren’t so lucky, however, as they all edged lower despite a round of risk appetite in the markets.

Let’s see if the euro and the pound bulls pick up the slack during the London session. A few minutes ago the GfK German consumer climate printed a reading of 8.50, in line with the previous release and current expectations. Meanwhile, the UBS consumption indicator clocked in at 1.57, up from last month’s upwardly revised 1.49 reading.

Only Italy’s retail sales and CPI reports at 9:00 am GMT and 10:00 am GMT respectively are scheduled for release today. These reports don’t usually influence the euro’s price action so make sure you also have your eyes peeled on the newswires in case we see reports that could influence risk appetite!

See also:

U.S. Session Recap

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  • ForExchange

    Hi!

    I am reading always your session updates. I have a question though: do you listen/watch somewhere the speeches of Central Bank Governors or do you “only” read the facts somewhere and make an article from it? If you watch it live, where exactly?

    Thanks,
    ForExchange

  • ForExchange

    And one other question: is the someone on the site who makes analysis on smaller currencies like: DKK, HUF etc.?

    • Pip Diddy

      Always glad to know when someone reads our posts. Thanks, buddy.

      I’d like to say that I have forex minions paying close tabs on all central bank speeches but I just use Twitter and other news feeds. That way I can “filter” which remarks actually move the markets.

  • ForExchange

    Hi Pip Diddy!

    Ok, thanks for the answer. I can also think about it to pay a bit more attention on Twitter!

    What about the currencies I mentioned above?

    Thank and I am waiting for the rest of the other two session updates today!

    • Pip Diddy

      We don’t usually focus on exotic currencies but Forex Gump writes about them from time to time.