Asian Session Forex Recap – Dec. 10, 2014

  • Chinese CPI down from 1.6% to 1.4% y/y in Nov
  • Chinese PPI down by 2.7% vs. estimated 2.3% decline
  • Australia’s Nov Westpac consumer sentiment down 5.7%
  • Fonterra cut New Zealand milk payout forecast again
  • Japanese PPI down from 2.9% to 2.7% y/y in Nov
  • Japanese consumer confidence down from 38.9 to 37.7

Risk aversion is still the name of the game! Higher-yielders were no match to the safe-havens in today’s Asian trading session, as bleak economic figures weighed on sentiment.

Ushering in the gloom and doom were China’s inflation reports, as the CPI and PPI both reflected weakening price pressures. The country’s annual CPI reading fell from 1.6% to 1.4% in November while producer prices marked a 2.7% year-over-year decline versus the projected 2.3% drop.

In Japan, producer prices also showed signs of slowing, as the PPI fell from 2.9% to 2.7% in November. Consumer confidence is weaker, as the index tumbled from 38.7 to 37.7.

And the bad news doesn’t stop there! In New Zealand, Fonterra lowered its milk payout forecasts once more, as dairy prices and revenues to continued to slide. Meanwhile, Australia reported a sharp drop in consumer confidence, as Westpac’s index chalked up a 5.7% decline.

Forex traders seemed eager to book profits on the recent tumbles though, as NZD/USD is up 0.37% after dipping to a low of .7660 while AUD/USD is up 0.38% after bouncing off .8262. It seems that the risk-off moves are more evident among the yen pairs, as AUD/JPY is down 0.26% so far while NZD/JPY is looking at a 0.29% loss.

Up ahead, only a few medium-tier reports are set to rock the forex pairs during the London trading session. France is gearing up to print its industrial production report and possibly show a 0.2% uptick for October after staying flat in September. The U.K. is set to release its trade balance, which might reveal a smaller deficit of 9.5 billion GBP from the previous 9.8 billion GBP shortfall.

U.S. Session Recap

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