Asian Session Forex Recap – Oct. 3, 2014

  • AU HIA new home sales up by 3.3% in August after falling by 5.7% in July
  • China non-manufacturing PMI down from 54.4 to 54.0
  • U.K. services PMI expected to print at 59.0?
  • Euro Zone service PMIs also on tap

Forex price action was a snoozer during the Asian trading session, as investors prepare for the NFP report coming up in a few hours.

Comdolls like the Aussie and Kiwi took hits for a while, especially after Australia’s AIG services index came in worse-than-expected and China released a disappointing non-manufacturing PMI. Luckily for the Aussie, a strong new home sales report kept some bears from charging.

AUD/USD slipped by 27 pips to a session low of .8774 while NZD/USD also dropped by 47 pips to a low of .7851 before finding some stability.

Another notable mover was the yen, which gave up more intraweek gains against its major counterparts. Possible causes include waning risk aversion and profit-taking ahead of the NFP release.

GBP/JPY led the yen selloff with an 87-pip jump to 175.87, but USD/JPY isn’t far behind with a 53-pip rise to 108.97. EUR/JPY is also up by 47 pips to 137.80 and AUD/JPY is up by 35 pips to 95.80. Yikes!

Forex news traders still have a couple of opportunities to bag pips during the London session with Spain and Italy printing their service PMI reports between 7:15 – 7:45 am GMT and the euro zone releasing its final service PMI reading at 8:00 am GMT. These reports don’t usually affect the euro’s price action for long, but watch out for any significant misses in case it causes volatility among euro pairs.

Coming up at 8:30 am GMT is the U.K.’s service PMI data. Analysts are expecting a reading of 59.0 in September, down from August’s 60.5 figure. A stronger-than-expected reading (just like what happened last month) could highlight the imbalance against the manufacturing industry, and may still not do the pound any favors. Watch this event closely nonetheless, as it could inspire volatility among pound pairs ahead of the NFP report!

U.S. Session Recap

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