Asian Session Forex Recap – Nov. 4, 2014

  • Nikkei up 2.73% for the day
  • Japanese Chamber of Commerce: JPY has weakened too much
  • RBA kept rates unchanged at 2.50% as expected
  • Australian retail sales up by 1.2% in Sept vs. 0.3% forecast
  • Australia’s trade deficit widened to 2.26 billion AUD in Sept
  • Spanish unemployment change, U.K. construction PMI due

Yen pairs hit the brakes on their recent forex rallies in today’s Asian trading session, as the Japanese Chamber of Commerce cautioned that the currency has weakened too much. They added that the ideal level for USD/JPY is between 95.00 to 105.00, forcing the currency pair to retreat from its recent highs and chalk up a 0.54% loss so far.

EUR/JPY is down 0.23% at the 142.00 handle, GBP/JPY is down 0.42% at the 181.40 area, and AUD/JPY is looking at a mere 0.02% loss as of this writing. Australian retail sales marked a stronger than expected 1.2% gain in retail sales for September, much stronger than the estimated 0.3% increase and the previous 0.1% uptick. On the other hand, the country’s trade balance was weaker than expected, as the deficit widened from 1.01 billion AUD to 2.26 billion AUD in the same month.

The RBA interest rate decision turned out to be a snoozer, as the central bank simply kept rates on hold at 2.50% and reiterated its view that the Australian dollar is high by historical standards. Nothing we haven’t heard before!

The forex calendar shows that we have a couple of trade-worthy news releases in the London trading session, as the Spanish unemployment change figure is due 9:00 am GMT and the U.K. construction PMI is up for release at 10:30 am GMT. Joblessness in the euro zone’s largest economy is expected to have increased by 23.4K in October, which might be negative for the shared currency, while the U.K. construction PMI could  dip from 64.2 to 63.5.

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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