Asian Session Recap – April 15, 2014

  • RBA minutes: AUD still high by historical standards
  • NZ finance minister English expects 2%-4% annual growth in 2018
  • China foreign exchange reserves hit $3.95 trillion, higher than $3.92 trillion expected
  • China new loans prints its largest increase in four years
  • Escalating concerns over Ukraine continue to weigh on risk appetite
  • Nikkei closes with 0.6% gain at 13,996.81

The plot thickens for the major forex pairs! The RBA fired up the comdolls early in the Asian session when it printed its meeting minutes. The Aussie bulls weren’t too excited over the lack of optimism in the documents. In fact, the RBA even repeated its sentiment that the Aussie is still “high by historical standards.”

Not even positive Chinese reports were able to stem the comdolls’ losses. China’s new loans reached 1.05 trillion yuan in March, higher than the expected 1.0 trillion figure. Not only that, but its foreign exchange reserves also surprised to the upside.

Escalating tensions in Ukraine also spooked some currency bulls. Fortunately for the Asian markets though, positive vibes from Uncle Sam’s strong retail sales reports helped hold off the risk aversion. EUR/USD and GBP/USD traded on tight ranges but AUD/USD and NZD/USD both suffered losses to the tune of 40-50 pips.

Let’s see if the London session traders would provide more interesting price action. At 7:15 am GMT Switzerland will release its PPI numbers, followed by the U.K.’s awaited inflation report at 8:30 am GMT. Analysts are expecting to see a 1.6% uptick in consumer prices against last month’s 1.7% gain but keep close tabs on the newswires in case wee see any surprises!

U.S. Session Recap

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