Asian Session Recap – March 28, 2014

  • JP real household spending at -2.50% vs. 0.10% expected
  • Tokyo core CPI rises by 1.0% vs. 0.9% uptick estimates
  • JP core CPI up by 1.3% as expected
  • JP unemployment rate drops from 3.7% to 3.6%
  • JP y/y retail sales up by 3.6% vs. 3.5% estimates and 4.4% previous
  • UK GfK consumer confidence at -5 vs. -6 expected reading
  • Nikkei closes up by 0.5% at 14,696.03
  • UK current account on tap

With the amount of report from Japan printed during the Asian session you would think that the yen would be the biggest mover. Instead, the Kiwi and the Aussie made the headlines as the comdolls reached notable highs against the Greenback.

NZD/USD had even touched .8696 before leveling off to the .8670 area. Even AUD/USD rocketed to just below the .9300 psychological handle before encountering any resistance. Apparently, positive trade data from New Zealand and rumors of China launching more stimulus had kept the comdolls breathing fire in the last few hours.

By contrast, yen crosses that have nothing to do with the comdolls have remained near their open prices. This is probably due to the mixed reports from Japan. Although the unemployment rate ticked lower, overall inflation numbers held steady and retail sales numbers printed lower than last month. These are not good news ahead of next month’s sales-tax hike.

Will the comdolls see end-of-week profit-taking during the London session? At 7:00 am GMT we’re scheduled to see Germany’s import prices and preliminary inflation readings. Then, the U.K.’s current account numbers will follow at 9:30 am GMT. The reports are generally expected to print higher numbers than last month but keep an eye out in case the results also influence risk appetite!

See also:

U.S. Session Recap

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