Asian Session Forex Recap – Nov. 13, 2014

  • RBA official: Currency intervention still an option
  • Australia’s MI inflation expectations up from 3.4% to 4.1%
  • Chinese industrial production slowed from 8.0% to 7.7% y/y
  • Chinese retail sales slowed from 11.6% to 11.5% in Oct
  • Japanese core machinery orders up by 2.9% in Sept
  • Japan’s annual PPI down from 3.6% to 2.9%
  • German and French CPI due

What is up with the Aussie?! AUD/USD had a burst of volatility in the past few hours, with the currency pair down 0.14% as of this writing. As it turns out, an RBA official mentioned that currency intervention is still an option since the Australian dollar is high by historical standards and could wind up hurting export growth. Data from China also weighed on the Aussie, with annual industrial production from 8.0% to 7.7% in October and retail sales coming in short at an 11.5% year-over-year increase.

AUD/JPY is up 0.22% so far, boosted mostly by weak economic prospects in Japan. Producer prices fell from 3.6% to 2.9% in October, short of the estimated 3.4% figure. Core machinery orders came in better than expected at a 2.9% gain versus the expected 1.0% decline though.

The forex calendar indicates that a few medium-tier releases are lined up from the euro zone, with the German and French final CPI readings up for release. Swiss PPI is also due and it might show a 0.1% dip in producer price levels, a slower pace of decline compared to the previous 0.2% decrease. EUR/USD is down 0.02% so far and struggling to pick a clearer direction while GBP/USD is down 0.03% after that massive decline in yesterday’s London trading session.

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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