Asian Session Forex Recap – Nov. 26, 2014

  • Australia’s construction work done down 2.2% in Q3
  • PBoC waiting for Q4 data before deciding on future rate cuts
  • Swiss UBS consumption indicator up for release
  • U.K. second GDP estimate due today

Forex price action among the major pairs was a little more subdued in the past few hours, as traders calmed down after the upside surprise in the U.S. preliminary GDP report. EUR/USD is down by only 0.02%, GBP/USD is down 0.04%, and USD/JPY is down 0.10%.

In Australia, construction work done for the third quarter showed a 2.2% decline versus the projected 1.7% drop. The Australian dollar was barely hurt after the release though, as AUD/USD is holding on to a 0.04% gain and AUD/JPY is down by only 0.05%. News that the PBoC would wait for Q4 economic data before deciding on future rate cuts was enough to keep the Australian currency afloat.

The forex calendar suggests that the British pound might steal the limelight in today’s London trading session, as the U.K. second GDP estimate is up for release. No changes are expected from the initially reported 0.7% growth figure, but any surprise downgrades might remind traders of the BOE’s cautious bias and drive the pound lower. Watch out for the actual reading due 10:30 am GMT, along with U.K. business investment data and CBI realized sales.

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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