Asian Session Recap – Sept. 25, 2014

  • RBNZ Governor Wheeler hints at currency intervention
  • RBA head Stevens expressed concerns on housing market
  • Nikkei up by 1.28% for the day
  • Chinese government talks of potential change in PBoC leadership
  • U.K. CBI realized sales to fall from 37 to 34?

The Kiwi had its wings clipped in today’s Asian trading session, as RBNZ Governor Wheeler hinted at potential forex intervention. In his testimony, he mentioned that he would welcome a move to a more sustainable exchange rate, leading to speculations that the central bank might stage another secret currency intervention as they did so last year.

NZD/USD crashed below the .8000 major psychological level in the past few hours, falling to a low of .7965 as of this writing and not showing any signs of retracing. NZD/JPY is attempting to break below the 87.00 mark while GBP/NZD has surged past the 2.0400 handle.

RBA Governor Stevens also gave a speech today and expressed concerns on Australia’s housing finance growth. This also contributed to the Aussie’s decline, with AUD/USD tumbling close to the .8800 support zone and AUD/JPY dropping to a low of 96.13. Talks of a potential change in PBoC leadership also sparked a bit of uncertainty, as Chinese President Xi Jinping might replace central bank head Zhou Xiaochuan with a more dovish policymaker.

The forex calendar shows that data is light in the upcoming trading session, with only a few medium-tier reports on tap. The U.K. will release its CBI realized sales index at 11:00 am GMT and possibly show a dip from 37 to 34, which might lead to a bit of pound selling. The euro zone will print its money supply and private loans readings, which might not be enough to spur huge moves among euro pairs. Bear in mind though that a recent interview with Draghi indicated that the ECB is ready to employ additional unconventional tools within mandate to support the euro zone economy.

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!