Asian Session Forex Recap – Nov. 7, 2014

  • RBA: AUD high by historical standards
  • Japanese Finance Minister Aso: Gov’t should hike sales tax again
  • Japanese Economy Minister Amari: Excessive JPY weakness undesirable

Consolidation is the name of the game, as forex traders are sitting tight ahead of the U.S. NFP release later on. Market participants seem to be expecting a strong showing though, as the U.S. dollar is slowly edging higher. USD/JPY is up 0.12% past the 115.00 major psychological level while EUR/USD is looking at a mere 0.01% downtick around the 1.2375 area.

The only major report released in the past few hours was the RBA minutes, which contained nothing unusual. Policymakers reiterated that the Australian dollar is high by historical standards and that a lower exchange rate could provide more support for the country’s export industry.

Comments from Japanese officials pushed the yen pairs around today, with Finance Minister Aso confirming that the government should go ahead with the sales tax hike next year and Economy Minister Amari cautioning that excessive yen weakness would be undesirable. GBP/JPY is up 0.11% so far at the 182.50 area while AUD/JPY is holding on to a mere 0.08% gain past the 98.60 mark.

The forex calendar indicates that only a few medium-tier reports are due from Europe in the next few hours. Germany and France will print their industrial production reports while Switzerland will release its unemployment rate, retail sales, and foreign currency reserves readings. U.K. trade balance is also up for release and a wider deficit of 9.4 billion GBP is eyed. Do watch out for short-term volatility around these releases but don’t doze off if major pairs continue to move sideways ahead of the NFP!

U.S. Session Recap

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