Asian Session Recap – July 10, 2014

  • Nikkei marks 0.56% decline for the day
  • Japanese core machinery orders down by 19.5% y/y
  • Australian employment change up by 15.9K in June vs. 12.3K consensus
  • Australian jobless rate climbed to 6.0%, previous data revised from 5.8% to 5.9%
  • China printed weaker than expected trade balance of 31.6 billion USD
  • Japanese consumer confidence improved from 39.3 to 41.1 vs. 40.7 consensus

The Australian dollar had a pretty volatile trading session, as it was pushed around by mixed data on the jobs front. The employment change figure for June showed a 15.9K increase versus the 12.3K consensus yet the jobless rate climbed to 6.0% from 5.9% in May, an upward revision from the initially reported 5.8% unemployment rate. Weaker than expected Chinese trade balance of 31.6 billion USD versus the projected 37.3 billion USD surplus also weighed on the Australian dollar.

AUD/USD spiked to a high of .9452 then retreated below the .9400 handle in the past few hours while AUD/JPY came close to 96.00 only to pull back to the bottom of its recent range around 95.25. EUR/AUD climbed back above the 1.4500 handle to a high of 1.4540 as of this writing.

In Japan, economic data was mostly weaker than expected. The core machinery orders data reported a 19.5% decline year-over-year instead of the estimated 0.9% rebound. Tertiary industry activity marked a 0.9% gain, but this was much weaker compared to the projected 1.9% rise. The April figure suffered a downward revision from -5.4% to -5.7%. Later on, Japan’s consumer confidence index posted a positive surprise, as it climbed from 39.3 to 41.1 in June. Despite that, the Nikkei closed with a 0.56% loss for the day.

The euro zone is set to print data on French and Italian industrial production, as well as French CPI and the ECB monthly bulletin – none of which are likely to have a very strong impact on euro trading. U.K. trade balance is up for release but the bigger market-mover might be the BOE interest rate statement scheduled much later on. Stay on your toes for potential volatility among pound pairs then!

See also:

U.S. Session Recap

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