Asian Session Forex Recap – Dec. 4, 2014

  • Australian retail sales up by 0.4% vs. 0.1% forecast
  • Australia’s trade deficit narrowed from 2.24B AUD to 1.32B AUD
  • FOMC member Fisher: Trimming Fed balance sheet would do no harm
  • BOE and ECB interest rate decisions coming up

Talk about making a comeback! After yesterday’s bleak reports, Australia printed a couple of stronger than expected figures in the past few hours. Retail sales marked a 0.4% gain versus the projected 0.1% uptick for October while the previous reading was upgraded to show a 1.3% increase.

AUD/USD is down 0.04% and is testing support at the .8400 handle while AUD/JPY is up 0.06%. NZD/USD is up 0.01% around the .7750 minor psychological mark.

Upbeat remarks from FOMC member Fisher lifted the U.S. dollar against most of its forex counterparts, as he mentioned that Fed rate increases would depend on inflation and employment data. He added that he isn’t insisting on a sharp rise in interest rates but he mentioned that reducing the Fed’s balance sheet assets and bond portfolio would do no harm.

USD/JPY is closing in on the 120.00 handle and is up 0.05% so far while EUR/USD is down 0.02% and GBP/USD is down 0.03%. Forex price action could pick up for euro and pound pairs in the next few hours, as the BOE and ECB are set to announce their monetary policy decision.

No actual changes are expected from both central banks, but traders are likely to keep close tabs on any shift in bias. ECB head Draghi is expected to drop more dovish hints and possibly some clues on their next easing moves, which could lead to more euro weakness. Stay on your toes!

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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