Asian Session Recap – April 10, 2014

  • Australian employment change up by 18.1K vs. 7.3K consensus
  • Australia’s jobless rate improved from 6.1% to 5.8%
  • Chinese trade balance showed 7.7 billion USD surplus
  • Japanese preliminary machine tool orders up by 41.8%
  • Nikkei closed with 0.43% gain for the day
  • French and Italian manufacturing production data due
  • BOE to announce monetary policy decision today

The Greenback sold off sharply during the start of today’s Asian market hours on the heels of the disappointing FOMC meeting minutes, but dollar bears needed to take a break towards the end of the session. EUR/USD reached a high of 1.3871 before retreating while GBP/USD peaked at 1.6803. USD/JPY is still attempting to break below the 101.50 minor psychological support as of this writing.

The Australian dollar was one of the strongest performers in the past few hours, after Australia printed a stronger than expected jobs report. Hiring increased by 18.1K, higher than the estimated 7.3K rise but still weaker compared to the previous 48.2K employment gain. However, the jobless rate managed to improve from 6.1% to 5.8% in March.

Better than expected Chinese trade balance also gave the Aussie a boost, as the world’s second largest economy printed a 7.7 billion USD trade surplus instead of the estimated 0.9 billion USD deficit. The Kiwi was also able to benefit from this upbeat report, as NZD/USD extended its gains past the .8700 major psychological resistance.

Japan reported a 41.8% increase in preliminary machine tool orders, stronger than the previous period’s 26.1% rise. This was enough to keep the yen supported against most of its major counterparts during the Asian trading session, allowing the Nikkei to close with a 0.43% gain for the day.

In the next few hours, France and Italy will be releasing its industrial production reports and probably spurring a bit of movement among euro pairs. The bigger event for the London session is the BOE interest rate decision, during which Carney is expected to drop hawkish remarks on monetary policy. Check out Forex Gump’s Trading Guide for the BOE Rate Decision and sit tight as pound pairs could be in for a wild ride!

U.S. Session Recap

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