Asian Session Forex Recap – Oct. 15, 2014

  • Chinese CPI down from 2.0% to 1.6% y/y in Sept
  • Chinese PPI chalked up 1.8% decline vs. expected 1.4% drop
  • Australia’s Westpac consumer sentiment index up by 0.9% this month
  • Australian new motor vehicle sales show 2.9% rebound in Sept
  • U.K. claimant count change to show -34.2K figure, jobless rate to fall to 6.1%?
  • ECB Governor Draghi set to testify today

Weak inflation figures from China and strong data from Australia? Now what? The Aussie got pushed around the forex charts in today’s Asian trading session, thanks to signs of a rebound in the domestic economy and hints of a deeper slowdown in China. Annual Chinese CPI fell from 2.0% to 1.6% in September while producer prices marked a steeper than expected 1.8% decline, as overcapacity and weak demand weighed on price levels.

In Australia, consumer confidence showed a small improvement in October, as the Westpac index marked a 0.9% uptick after falling by 4.6% in the previous month. New motor vehicle sales chalked up an impressive 2.9% gain for September, making up for the previous 1.6% decline.

AUD/USD is up 0.23% at 0.8730 while AUD/JPY logged in a 0.48% gain in the past few hours at 93.70. EUR/USD is drifting lower, down 0.06% at 1.2650 while GBP/USD is flat at the 1.5900 handle. USD/JPY is up 0.31% so far, coming within a few pips shy of the 107.50 mark.

Up ahead, the forex calendar shows that things are about to get exciting for the pound and the euro with these catalysts lined up: The U.K. claimant count change is up for release at 9:30 am GMT and it might show a 34.2K increase in hiring for September, slightly weaker compared to the previous 37.2K gain. Nonetheless, the jobless rate is likely to improve from 6.2% to 6.1%, which might still keep the pound afloat. Make sure you read Forex Gump’s trading guide for the U.K. jobs release if you’re planning to play the report!

As for the euro, ECB Governor Draghi is set to give a couple of testimonies today and possibly address the ongoing concerns in the region. Any clues showing that the central bank is getting ready to implement more stimulus later on could drive the euro much lower against its forex counterparts.

U.S. Session Recap

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

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