Asian Session Forex Recap – Jan. 13, 2015

  • Chinese trade surplus at 49.6 billion USD vs. estimated 48.9 billion USD reading
  • Japanese current account balance stronger than expected at 0.91 trillion JPY
  • Nikkei records 0.64% loss for the day
  • ECB official Couere talked about pending QE decision
  • U.K. headline CPI to fall below 1%?

After the run in risk aversion during the previous trading session, the Australian dollar was able to get back on its feet lately as China recorded a higher than expected trade surplus. The reading fell from 54.5 billion USD to 49.6 billion USD in December, higher than the estimated 48.9 billion USD reading.

AUD/USD is up 0.12% and AUD/JPY is up 0.38% so far while NZD/USD is down 0.17%. There have been no other major reports released during Asian session, as risk aversion still appeared to be present. The Nikkei recorded a 0.64% loss for the trading day, even as the Japanese current account balance came in stronger than expected, while most higher-yielders were unable to advance against the dollar and the yen.

The euro was under a bit of selling pressure in the past few hours, as ECB official Couere discussed the possibility of actual QE from the central bank. Although he mentioned that the result of the Greek election probably wouldn’t affect their decision, the fact that he reminded forex market watchers that another ECB decision is coming up later in the month was enough to draw euro bears in.

Meanwhile, the U.K. is gearing up to release its inflation reports for December at 10:30 am GMT. The headline reading is slated to fall from 1.0% to 0.7%, thanks to the continuous slide in oil prices, while the core figure could climb from 1.2% to 1.4% in the same period. Producer prices are expected to post a sharp 2.5% decline, hinting that weaker inflationary pressures are to be expected. Lower than expected readings could lead to a pound selloff so make sure you keep tabs on these releases!

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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