Asian Session Forex Recap – Oct. 10, 2014

  • Japanese tertiary industry activity down by 0.1% in Aug
  • Japanese July tertiary industry downgraded from 0.0% to -0.3%
  • Consumer confidence dropped from 41.2 to 39.9 in Japan
  • BOJ: Exports to recover moderately, consumption resilient
  • Nikkei down by 1.15% for the day
  • Australian home loans declined by 0.9% in Aug

I’m seeing red! Most economic reports in today’s forex calendar came in below expectations, keeping risk-taking in check. In Japan, the August tertiary industry activity reading showed a 0.1% decline while the previous month’s report was downgraded from 0.0% to -0.3%. Consumer confidence worsened in September, as the index slipped from 41.2 to 39.9 instead of improving to the projected 42.2 reading.

Minutes of the latest BOJ meeting were somewhat more hopeful though, as policymakers agreed that exports could recover moderately while private consumption might stay supported by improving hiring trends. USD/JPY is down 0.09% around 107.75 while EUR/JPY edged up by 0.05% to the 136.90 area.

In Australia, home loans saw a surprise 0.9% decline, even as analysts expected to see a 0.2% uptick. This goes to show that rising house prices are starting to weigh on demand, supporting the RBA’s claim that potential asset price bubbles are a concern. AUD/USD is down 0.05% at .8777 while AUD/JPY has seen a 0.13% dip to the 94.60 level as of this writing.

Data is light in the upcoming London session, with only medium-tier reports up for release from the euro zone and the United Kingdom. The U.K. is set to print its trade balance for August and possibly show a smaller deficit of 9.6 billion GBP from the previous 10.2 billion GBP shortfall. Construction output data and the CB leading index are also due from the U.K., with strong figures likely to keep the pound afloat. French and industrial production figures are lined up from the euro zone.

U.S. Session Recap

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