Asian Session Recap – July 28, 2014

  • Nikkei closed 0.46% up for the day
  • Traders wary of potential RBNZ intervention
  • No major reports due in London trading session

So it seems risk appetite is still weak, huh? AUD/USD and NZD/USD edged lower in today’s Asian trading session, with the former chalking up nearly 20 pips in losses for the past few hours and the latter reaching a low of .8531.

Word through the grapevine is that traders are still moving out of their long Kiwi positions as speculations of another RBNZ secret currency intervention are weighing on the currency. Recall that Governor Graeme Wheeler recently said that the New Zealand’s exchange rate levels are unjustified by fundamentals and are unsustainable, given the recent drop in commodity prices.

The Nikkei managed to escape with a 0.46% increase for the day though, with other Asian equities also posting decent gains. USD/JPY has retreated slightly from its recent upside break from the 101.50 resistance and may be due for a retest sooner or later. EUR/JPY has rebounded off its recent lows at the 136.60 area and is trading around the 136.80 levels as of this writing while GBP/JPY has just tested the 173.00 mark.

There are no major reports up for release in the London trading session, which means that risk sentiment might take control of forex price action. Stay on your toes for any market updates then!

See also:

U.S. Session Recap

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