Asian Session Recap – August 5, 2014

  • Australia’s trade deficit at 1.68 billion AUD vs. 2.00 billion AUD estimate
  • China’s HSBC services PMI down from 53.1 to 50.0
  • RBA kept interest rates unchanged at 2.50%
  • RBA reiterated plan to maintain period of stability interest rates
  • Spanish and Italian services PMI due
  • U.K. services PMI to show climb from 57.7 to 58.1?

The Aussie popped higher in today’s Asian trading session, as Australia’s trade balance came in better than expected while the RBA refrained from making any surprises in their interest rate decision. Aside from that, RBA policymakers reiterated their plan to maintain a period of stability in interest rates. AUD/USD jumped to a high of .9344 while AUD/JPY reached 95.79.

Yen pairs saw little action in today’s trading, with EUR/JPY struggling to stay between 137.50 and 138.00. NZD/JPY is holding on to the 87.50 mark while CAD/JPY is edging slowly below the 94.00 handle. GBP/JPY had a bit more volatility, as it climbed to a high of 173.11 before retreating around 10 pips below the 173.00 handle as of this writing.

It’ll be all about services PMIs in the London trading session, as Spain, Italy, and the U.K. will release their respective readings. In the U.K., the services PMI is slated to climb from 57.7 to 58.1, reflecting a stronger expansion in the industry. Spain’s services PMI is also expected to show an improvement while Italy’s report could indicate a slower expansion.

Also due today is the euro zone retail sales report, which might show a 0.4% increase in consumer spending for June after staying flat in May. A higher than expected rise might lead to more gains for the euro while a weak reading could lead to euro selling.

See also:

U.S. Session Recap

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