Asian Session Forex Recap – Nov. 3, 2014

  • Japanese banks on holiday today
  • Australian building approvals down by 11.0% vs. -0.9% forecast
  • Australia’s ANZ job advertisements up by 0.2%
  • Chinese non-manufacturing PMI down from 54.0 to 53.8
  • Spanish, Italian, and Swiss manufacturing PMI due

It looks like the force is strong in this one! The U.S. dollar gapped up against most of its forex counterparts over the weekend and isn’t showing any signs of filling those gaps anytime soon. Japanese banks are on holiday today, which explains the lack of liquidity during the Asian trading session.

USD/JPY started the week off at 112.69 and is hovering around that area for the time being. EUR/USD has seen a 0.28% decline so far, testing lows not seen since 2012!

Data from Australia came in mixed, as the ANZ job advertisements report showed a decent 0.2% gain while the building approvals data marked a massive 11.0% drop, worse than the estimated 0.9% decline. In China, the non-manufacturing PMI dipped from 54.0 to 53.8, reflecting a slightly slower pace of expansion in the services industry.

AUD/USD is down 0.59% so far and has breached the .8750 minor psychological support while AUD/JPY is looking at a 0.26% loss around the 98.55 area. NZD/USD is down 0.02% so far, as the pair is struggling to land back above the .7800 mark.

The forex calendar shows that there are a handful of medium-tier reports up for release from the euro zone today, namely the Spanish and Italian manufacturing PMIs and the region’s final manufacturing PMI reading. Weak figures could lead to more euro weakness while strong results could allow the shared currency to stay afloat.

More manufacturing reports are due from the U.K. and Switzerland, with the latter set to print its PMI at 9:30 am GMT and the former set to release its report at 10:30 am GMT. Brace yourselves for another round of dollar rallies against the pound and the franc if the actual figures miss their marks!

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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