Asian Session Recap – Sept. 10, 2014

  • Japanese core machinery orders up by 3.5% vs. 4.1% forecast
  • Japanese PPI up by 3.9% vs. 4.1% estimate and 4.3% previous
  • Australia’s Westpac consumer sentiment down by 4.6% in Sept
  • French final non-farm payrolls and industrial production data due
  • BOE inflation report hearings scheduled today

The Greenback got back on its feet in today’s Asian trading session, as the U.S. currency erased some of its recent losses against its forex counterparts. EUR/USD topped at 1.2953 before retreating to the 1.2925 area while USD/JPY resumed its climb and reached a high of 106.57. GBP/USD is carrying on with its descent but is finding a bit of support at the 1.6100 handle.

Data from Japan was weaker than expected again, as the core machinery orders report showed a 3.5% gain instead of the projected 4.1% increase for July. August PPI marked a 3.9% annualized gain, lower than the estimated 4.1% rise and the previous 4.3% gain, hinting that inflationary pressures might continue to weaken in Japan and force the BOJ to act.

The Japanese yen gave up ground after these weak figures were printed, with EUR/JPY climbing 35 pips up from its 137.37 open price and GBP/JPY surging to a high of 171.75. The Nikkei chalked up its third consecutive winning day, as it logged in 0.25% in gains for today.

In the Land Down Under, data continued to disappoint, with the Westpac consumer confidence index marking a 4.6% decline for September. Components of the survey indicated that consumers are getting increasingly concerned about higher taxation and potentially weaker economic conditions. AUD/USD broke below the .9200 handle after the release and has reached a low of .9157 as of this writing.

Data is relatively light in today’s London forex trading session, with a couple of French economic figures due along with the BOE inflation report hearings. BOE Governor Carney said pretty much all there is to say when it comes to the central bank’s rate hike prospects in his testimony yesterday, but the hearings could still provide clues on whether majority of policymakers support his views or not.

See also:

U.S. Session Recap

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