Asian Session Recap – May 5, 2014

  • Australia building approvals down by 3.5%
  • Australia ANZ job advertisements up by 2.2%
  • Chinese HSBC final manufacturing PMI downgraded from 48.3 to 48.1
  • Euro zone Sentix investor confidence index due
  • EU economic forecasts to be revised lower?
  • Japanese banks on holiday
  • BOJ Gov Kuroda: Domestic recovery is on track

Not even the Japanese holiday could stop yen pairs from moving around today! USD/JPY slipped to a low of 102.17 while EUR/JPY took a dive below 141.50, as risk aversion settled in the forex market. The yen also got a boost from BOJ Governor Kuroda’s interview wherein he said that domestic recovery is on track.

In today’s Asian trading session, Australia reported a massive 3.5% decline in building approvals, along with a downward revision in the previous month’s figure. What shielded the Australian dollar from chalking up more losses is the 2.2% increase in ANZ job advertisements for April, keeping AUD/USD supported above .9250. However, China showed a downgrade for its April HSBC final manufacturing PMI reading from the initially reported 48.3 figure to 48.1.

Data is light in the next few hours, as the only reports on tap are the EU economic forecasts and euro zone Sentix investor confidence index. A small increase in investor optimism is eyed, as the reading is projected to climb from 14.1 to 14.2, but EU officials are expected to be a little less upbeat with their economic forecasts for the region. Watch out for a potential euro selloff if downgrades are announced!

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U.S. Session Recap

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