Asian Session Recap – May 29, 2014

  • Japanese retail sales down by 4.4% vs. expected 3.2% decline
  • Australian private capital expenditure down by 4.2% in Q1
  • Australia’s HIA new home sales up by 2.9%
  • German, French, and Swiss traders off on holiday

Mixed data? So what?! The Australian dollar managed to make a strong rally in the past trading session, as AUD/USD surged to a high of .9285 while AUD/JPY climbed by roughly 70 pips. HIA new home sales showed a 2.9% increase, stronger than the previous month’s 0.2% gain, while private capital expenditure had a 4.2% decline for the first quarter. This was worse than the estimated 1.6% drop, yet traders retained positive vibes for the Aussie when the previous quarter’s reading was upgraded from -5.2% to -4.5%.

In Japan, retail sales showed a larger than expected 4.4% year-over-year decline versus the estimated 3.2% drop. Take note that this includes the effect of the April sales tax hike, suggesting that Japanese data due to be released later on this week might reflect weakness as well. Despite that, the yen was still able to put up a good fight, as the BOJ hasn’t wavered from its optimistic stance.

There are no major reports up for release in the upcoming London trading session, as several European banks are closed for the Ascension Day holiday. Better keep close tabs on market sentiment to figure out whether higher-yielding currencies could continue to sell off or not!

 

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!