Asian Session Recap – July 21, 2014

  • Japanese banks on holiday
  • U.K. Rightmove HPI down by 0.8% in July
  • New Zealand credit card spending up by 7.0% y/y

It looks like forex traders are still biting their nails! Thanks to prevailing geopolitical risks weighing on market sentiment, traders seem to be extra cautious with their moves at the start of the week. AUD/USD is consolidating below the .9400 major psychological level while GBP/USD is holding its ground below the 1.7100 mark.

The Kiwi was able to regain ground, as New Zealand’s credit card spending report showed a 7.0% annualized gain in June. Take note though that this is lower compared to the previous month’s 7.6% figure. Despite that, NZD/USD managed to jump to a high of .8718 while NZD/JPY held on to roughly 20 pips in gains above the 88.00 level.

Japanese banks are on holiday today, yet the yen managed to advance against the dollar in the past few hours. USD/JPY has sunk to a low of 101.18 after ending the previous week at 101.36. The yen also packed in gains against the pound and Aussie, but consolidated to the euro above the 137.00 handle.

Only the German PPI and German Buba monthly report are due in the next few trading hours, leaving most major currencies at the mercy of risk sentiment. Earlier today, the U.K. printed a decline of 0.8% in its Rightmove HPI for July, indicating that house price inflation is slowing down. Make sure you stay on your toes for any updates on the situation in Gaza or the Ukraine-Russia conflict, as these could determine how risk flows will go for the rest of the day. Good luck!

See also:

U.S. Session Recap

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