Asian Session Forex Recap – Jan. 27, 2015

  • Australia’s NAB business confidence index up from 1 to 2
  • Chinese CB leading index up from 0.8% to 1.1% in Dec
  • U.K. preliminary GDP to show 0.6% growth in Q4 2014?

The lack of top-tier data in today’s Asian trading session kept major forex pairs in ranges, as market watchers are bracing themselves ahead of the top-tier reports due later on. EUR/USD is struggling to hold on to the 1.2400 handle and is up 0.03%, USD/JPY is down 0.19% at 17 pips above the 118.00 mark, and USD/CHF is up 0.2% near .9050.

In Australia, the NAB business confidence index climbed from 1 to 2 in December, reflecting a small improvement in sentiment. Meanwhile, the Chinese CB leading index marked a 1.1% gain for the previous month, higher than the previous 0.8% uptick. AUD/USD is up 15 pips (+0.19%) and AUD/JPY is down 5 pips (-0.04%), as the Australian currency barely gained support from these reports.

All eyes are on the pound for the upcoming London trading session, as the forex calendar shows that the U.K. preliminary GDP reading is up for release at 10:30 am GMT. Analysts are expecting to see a 0.6% growth figure for Q4 2014, slightly lower compared to the previous period’s 0.7% expansion.

Pound traders seem to be excited to trade this report and are expecting an upside surprise, with GBP/USD logging in a 0.32% gain so far at the 1.5100 handle. EUR/GBP is down 0.10% at .7441, GBP/NZD is up 0.13%, and GBP/AUD is flat around 1.9020.

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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