Asian Session Recap – May 9, 2014

  • Chinese CPI weaker than expected at 1.8% vs. 2.1%
  • Chinese PPI down by 2.0% year-over-year
  • BOJ economic advisers recommend slashing corporate tax to 20%
  • German trade surplus to increase from 15.7B to 16.9B EUR
  • UK manufacturing production data due

After all that excitement in previous forex trading sessions, price action seems to have calmed down a bit in the past few hours. EUR/USD hovered above the 1.3800 major psychological support while GBP/USD edged slightly lower to 1.6916. USD/JPY made a quick rebound above the 101.50 mark.

Aussie pairs saw more action as Chinese inflation reports were released. The annual CPI fell short of expectations at 2.1% and printed a mere 1.8% figure. Meanwhile, the PPI release hinted at weaker inflationary pressures down the line as it showed a 2.0% decline in producer prices. AUD/USD got knocked down to the .9350 area right after the release while NZD/USD slipped below .8650.

In the upcoming trading session, we’ll get a couple of medium-tier reports from the euro zone and the U.K. economy. Germany is set to print its trade balance and possibly show a wider surplus of 16.9 billion EUR from the previous 15.7 billion EUR. The U.K. will release its manufacturing production numbers for March and probably show a 0.3% uptick, slower compared to the previous 1.0% increase. While these releases are not likely to spark multi-hundred pip moves, bear in mind that weaker than expected results might force the pound or euro selloff to resume.

See more:

U.S. Session Recap

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