Asian Session Recap – April 23, 2014

  • NZ credit card spending up by 8.1% in March vs. +5.9% in February
  • AU headline quarterly inflation up by 0.6% vs. 0.8% expected and previous
  • AU trimmed mean inflation up by 0.5% vs. 0.7% expected
  • China HSBC flash mfg PMI clocks in at 48.3 as expected

Timberrrr!!! The Aussie was the biggest loser in the Asian forex trading session after Australia and China both printed weaker-than-expected reports.

Australia’s headline inflation for Q1 2014 only came in at 0.6%, which is a lot weaker than the previous and expected rate of 0.8%. Recall that analysts had been banking on a strong inflation reading to support the RBA’s plans to stop cutting rates for the time being.

It also didn’t help the comdolls that China’s manufacturing PMI clocked in at 48.3 as expected. The figure not only hints at industry contraction, but it’s also weaker than 50.3, China’s official reading for March. On top of that, the yuan also hit its 14-month lows today.

The Aussie easily fell across the board with AUD/USD now below .9300 after hitting stop losses. GBP/AUD is about 170 pips above its pre-report levels while AUD/JPY is also trading 100 pips below its open price.

Between 7:00 am GMT to 8:00 am GMT we’ll see Germany, France, and the euro region’s flash manufacturing and services PMIs. Analysts are expecting slightly weaker readings than last month but keep an eye out in case the PMIs surprise to the upside and boost the euro.

If you’re not up for trading the euro today, then you could also set your sights on the pound, which could be affected by the BOE monetary policy decision and public borrowing figures at 8:30 am GMT. Market players aren’t expecting changes from the central bank so it’s likely that they won’t release any statement today. Still, keep close tabs on the report for its possible impact on the pound pairs!

U.S. Session Recap

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