Asian Session Forex Recap – Jan. 9, 2015

  • Chinese CPI up from 1.4% to 1.5% in Dec as expected
  • China’s producer prices show worse than expected 3.3% decline
  • Australian retail sales post 0.1% uptick vs. estimated 0.3% gain in Nov
  • Japanese leading indicators down from 104.5% to 103.8%

Higher-yielders were off to a shaky start in today’s Asian trading session but managed to end higher against the U.S. dollar as risk appetite returned to the forex market. Major pairs appear to be trading carefully ahead of the NFP report due in the U.S. trading session, with EUR/USD up by 0.15% and GBP/USD up by 0.08%.

China reported a small uptick in inflation for December, as the CPI climbed from 1.4% to 1.5% as expected. However, producer prices hinted of weaker inflationary pressures down the line since the latest reading showed a 3.3% drop versus the projected 3.1% decline. In Australia, retail sales posted a bleak 0.1% uptick for November, lower than the projected 0.3% gain.

AUD/USD is still up 0.15% and NZD/USD is holding on to a 0.09% gain. USD/JPY is down 0.19% after Japan reported a decline in its leading indicators from 104.5% to 103.8% – its lowest level in nearly two years.

The forex calendar suggests that it could be a quiet London trading session with only a few medium-tier reports lined up. From the U.K., we have the manufacturing production and trade balance numbers due 10:30 am GMT. Switzerland is set to print its unemployment rate, which is expected to hold steady at 3.2%, and its CPI reading for December. German and French industrial production and trade balance reports are also due today, but London session traders might take it easy before the bigger reports are printed later on.

U.S. Session Recap

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