- Japanese retail sales up by 2.3% y/y vs. 0.9% forecast
- Goldman Sachs: Worst is yet to come for Australian economy
- Goldman Sachs: RBNZ to keep rates on hold for 2015
- German import prices to show 0.1% decline in Sept?
Forex traders flocked back to the Japanese yen in today’s Asian trading session after Japan printed a stronger than expected retail sales report. It marked a 2.3% year-over-year gain for the month of September, higher than the estimated 0.9% uptick and enough to convince some market watchers that the consumer sector is recovering from the April sales tax hike.
On the other hand, the Australian economy might be facing downbeat prospects, as an analyst at Goldman Sachs predicted that the worst is yet to come for the Land Down Under. He noted that mining investment could fall further and that raw material exports could take another hit. Apart from that, he also hinted that the RBNZ might keep rates unchanged for the entire 2015.
USD/JPY is flat at 107.80 and GBP/JPY is also holding steady around 173.85. EUR/JPY has a 0.04% gain so far at the 137.00 mark while AUD/JPY is up 0.17%. AUD/USD is up 0.15% past the .8800 handle, indicating that the Australian dollar wasn’t bothered by the Goldman Sachs forecast. NZD/USD is slowly grinding higher with a 0.03% gain as of this writing.
The forex calendar shows a data-light London trading session, with only the German import prices data lined up. Another 0.1% dip is expected, which might be enough to revive deflation fears in the region. Watch out for the actual release around 8:00 am GMT!
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