Asian Forex Session Recap – Oct. 6, 2014

  • Australia’s MI inflation gauge up by 0.1% in Sept
  • Chinese and Australian banks on holiday today
  • British Business Secretary Vince Cable: GBP is overvalued by 10-15%
  • German factory orders report due

Dollar bulls, retreat! The Greenback returned some of its recent forex gains from last Friday, thanks to the lower liquidity in today’s Asian session. USD/JPY dipped to a low of 109.47 while GBP/USD pulled up to a high of 1.5988 in the past few hours. EUR/USD is moving sideways above 1.2500 and USD/CHF gapped up to 0.9688 then slid to a low of .9667.

Over the weekend, British Business Secretary Vince Cable remarked that the pound is overvalued by 10-15% and is starting to hurt exports. With that, the pound resumed its forex selloff to the yen earlier in the day, as GBP/JPY fell to the 175.00 support zone.

Australia reported a 0.1% uptick in its MI inflation gauge for September after the figure stayed flat in the previous month. AUD/USD is up 0.29% and is moving closer to the .8700 mark while NZD/USD is up 0.13% at 0.7774.

The forex calendar shows that data is light in the upcoming London session, with only the German factory orders report up for release. It could print a 2.4% decline for August, following the previous month’s 4.6% increase. Euro zone retail PMI and Sentix investor confidence figures are also due, with weak results likely to push the shared currency much lower.

U.S. Session Recap

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