Asian Session Forex Recap – Jan. 29, 2015

  • RBNZ kept rates on hold, dropped hawkish bias
  • Australian import prices up 0.9% in Q4 2014 vs. estimated 1.5% gain
  • Japanese retail sales posted 0.2% annualized increase, lower than 1.1% consensus
  • Nikkei down 1.05% for the day
  • German preliminary CPI and unemployment change data due

The Kiwi had its wings clipped in the wee hours of the Asian trading session, as the RBNZ dropped its hawkish bias. The central bank announced that its next policy move could either be a rate hike or a rate cut, a significant shift from their previous upbeat statements. After trading around .7450 prior to the event, NZD/USD is testing the .7300 support level as of this writing.

In Australia, import prices showed a 0.9% quarterly gain for Q4 2014, lower than the estimated 1.5% increase. AUD/USD is down 21 pips (-0.27%), AUD/JPY is lower by 12 pips (-0.13%), and EUR/AUD is up 33 pips (+0.23%).

Japan logged in a bleak 0.2% annual uptick in retail sales, much lower than the estimated 1.1% increase. This suggests that last year’s sales tax hike and the recent fall in oil prices are weighing on spending in Japan and might lead the BOJ to consider further stimulus. The Nikkei chalked up a 1.05% loss for the day as Asian equities gave in to risk aversion.

Up ahead, the forex calendar suggests that traders might focus on the euro in the upcoming London trading session, with a couple of top-tier reports due from Germany. The preliminary CPI is slated to show a 0.8% decline for the current month after staying flat in December while the jobs report could show a 9K drop in unemployment, a slower pace of decline compared to the previous 27K decrease. Weaker than expected results could lead to another round of euro selling so make sure you watch out for those figures around 10:00 am GMT!

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!