Asian Session Forex Recap – Dec. 9, 2014

  • Nikkei down 0.68% for the day
  • Japanese preliminary machine tool orders up 36.6% y/y
  • NAB business confidence down from 5 to 1 in Nov
  • NAB: Two RBA rate cuts possible in 2015
  • U.K. BRC retail sales monitor marked 0.9% uptick in Nov

Another wipeout for the Aussie! Weaker business confidence and talks of a potential RBA rate cut for next year weighed on the Australian currency in the past few hours. AUD/USD dropped 0.61% to the .8250 area while AUD/JPY is looking at a 1.2% decline so far.

NAB (National Australia Bank) business confidence slipped from 5 to 1 in November, reflecting a downturn in optimism. This prompted the bank to predict that the RBA is likely to cut interest rates twice next year in order to boost employment and growth.

In Japan, the Nikkei logged in a 0.68% loss for the day as equities are still reeling from the fact that the recession was deeper than initially reported for Q3. Data released from Japan today was actually upbeat, as the preliminary machine tool orders showed a 36.6% annualized increase for November, up from the previous 30.8% gain.

USD/JPY is down 0.58% so far and is dipping below the 120.00 handle while EUR/JPY is down 0.42% at the 148.00 mark. GBP/JPY is down 0.5% and looks ready to break below 188.00, but this could depend on the outcome of the U.K. manufacturing production report due 10:30 am GMT today. Analysts are expecting to see a 0.2% uptick, a smaller increase compared to the previous 0.4% reading.

Also due today is the Swiss unemployment rate which might hold steady at 3.2%. Any improvements could spur demand for the franc, as USD/CHF is down 0.06% as of this writing. The forex calendar indicates a data-light session for the euro pairs, as only the medium-tier German and French trade balance reports are due.

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!