Asian Session Forex Recap – Oct. 23, 2014

  • New Zealand quarterly CPI weaker than expected at 0.3% vs. 0.5%
  • Australia’s NAB business confidence steady in Q3
  • Chinese HSBC flash manufacturing PMI up from 50.2 to 50.4 in Oct
  • Japanese flash manufacturing PMI climbed from 51.7 to 52.8
  • Nikkei closed 0.37% lower for the day
  • Euro zone PMIs to show deeper contraction in manufacturing and services?
  • U.K. retail sales and BBA mortgage approvals up for release

The Kiwi had its wings clipped in today’s Asian trading session since the New Zealand quarterly CPI fell short of expectations. Inflation picked up by only 0.3% during the period, lower than the estimated 0.5% gain. NZD/USD is down 1.03% so far and has broken below the .7850 minor psychological level while NZD/JPY is looking at a 0.93% decline and is inching closer to the 84.00 mark.

In Australia, business confidence held steady in Q3, as the NAB index stayed at 6. China’s HSBC flash manufacturing PMI climbed from 50.2 to 50.4 in October, reflecting a slightly stronger pace of expansion. AUD/USD is down 0.16%, AUD/JPY is down 0.08%, while AUD/NZD is up 0.87%.

Japan’s flash manufacturing PMI improved from 51.7 to 52.8, indicating a pickup in industry expansion. However, the Nikkei failed to draw support from this positive release, as the equity index showed a 0.37% decline for the day. USD/JPY is up 0.09% at the 107.25 area while EUR/JPY and GBP/JPY are both up by 0.11% so far.

Coming up, the forex calendar shows that we’ve got quite a busy London trading session, with several reports lined up from the U.K. and the euro zone. Germany and France are set to print their latest PMI readings from the manufacturing and services industries, with deeper contractions or slower expansions expected. The U.K. will be printing its retail sales reading for September and is likely to show a 0.1% dip, which might be negative for the pound. Watch out for the BBA mortgage approvals and CBI industrial order expectations reports as well.

U.S. Session Recap

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