Asian Session Forex Recap – Nov. 27, 2014

  • New Zealand trade deficit narrowed from 1.37B to 0.91B NZD
  • RBNZ data: No forex intervention in October
  • Australian private capital expenditure up 0.2% vs. estimated 1.7% decline in Q3
  • Australia’s HIA new home sales showed 3.0% jump in Oct
  • German preliminary CPI and unemployment change figures due
  • OPEC meetings scheduled today

Commodity currencies gave a sigh of relief in today’s Asian trading session, as economic data reflected improvements. New Zealand’s trade deficit narrowed from 1.37 billion NZD to 0.91 billion NZD in October, weaker than the estimated shortfall of 0.65 billion NZD. A closer look at the components of the report reveals that the country’s dairy exports to China suffered a huge slump, contributing to the 5.1% decline in shipments.

Despite that, the Kiwi managed to score decent gains when the RBNZ foreign purchases data revealed that the central bank did not stage a surprise intervention in October. NZD/USD is up 0.56% at the .7900 handle and NZD/JPY has a 0.29% gain near the 93.00 mark.

In Australia, HIA new home sales marked an impressive 3.0% jump in October while the private capital expenditure report showed a 0.2% quarterly uptick versus the projected 1.7% decline for Q3. AUD/USD is up 0.55% and is 10 pips shy of the .8600 handle while AUD/JPY is looking at a 0.29% gain so far.

Euro pairs could be in for more forex volatility in the next few hours, with Germany set to release its preliminary CPI report and unemployment change figure for October. The inflation report could show a flat reading for the current month after seeing a 0.3% decline in October. Meanwhile, employment could pick up by a measly 1K for euro zone’s largest economy, with a weaker than expected reading likely to result in a euro selloff.

With liquidity expected to lighten up later on, as U.S. traders are off on a Thanksgiving holiday, keep in mind that the OPEC meetings are going on today and that any surprise announcements might lead to unusually large moves. Stay on your toes!

U.S. Session Recap

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