Asian Session Recap – July 11, 2014

  • Nikkei in the red again at -0.34% for the day
  • Australian home loans flat in May vs. estimated 0.6% drop
  • Japanese Economy Minister: Gov’t aiming to lower corporate tax rate

After the panic selling during the London and U.S. trading sessions, major currencies appear to have calmed down over the past few hours. AUD/USD has recovered close to the .9400 handle before retreating to the .9388 levels and moving sideways while NZD/USD is holding steady around the .8815 area.

On the economic front, data was light as the only medium-tier report released was Australia’s home loans report, which showed a flat reading in May instead of the estimated 0.6% drop. The Australian dollar had trouble sustaining its gains though, as market watchers still appear to be extra cautious.

Over in Japan, Economy Minister Amari mentioned that the Japanese government is aiming to lower the corporate tax rate by 6% over the next five years starting the next fiscal year. This was enough to help the yen advance further against its counterparts, with USD/JPY testing the 101.10 area and EUR/JPY sinking to a low of 137.66.

Data is still light in the next few hours, as only the German final CPI and WPI are up for release. Bleak results could lead to more losses for the euro, as this could revive fears of deflation in the region. In the U.K., data on construction output and the CB leading index are up for release.

See also:

U.S. Session Recap

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