Asian Session Forex Recap – Feb. 9, 2015

  • Chinese trade surplus widened from 49.6B USD to 60.0B USD
  • Australia’s ANZ job advertisements up by 1.3% in Jan
  • Japanese current account balance up from 0.91T JPY to 0.98T JPY
  • Japanese consumer confidence index up from 38.8 to 39.1 vs. 39.4 forecast
  • German trade balance and Sentix investor confidence index due

It looks like dollar traders are taking a break from last week’s NFP party, as most forex majors had a quiet Asian trading session. EUR/USD is up 20 pips (+0.17%), GBP/USD is higher by 23 pips (+0.16%) and USD/JPY is down 20 pips (-0.24%).

The Chinese trade balance released over the weekend printed better than expected results, as the surplus widened from 49.6 billion USD to 60.0 billion USD. A closer look at the components of the report indicates that oil imports weakened significantly, as domestic demand has slumped. With that, AUD/USD gapped down over the weekend and is down 0.23% while AUD/JPY is looking at a 0.48% loss so far.

Aussie pairs were able to limit their losses later on though, as Australia reported a 1.3% gain in ANZ job advertisements for January. Although this is lower compared to the previous month’s 1.8% gain, it still marks the seventh consecutive month of increasing job advertisements, which implies stronger hiring gains later on.

Data from Japan came in mixed, as the current account balance beat expectations and posted a larger surplus of 0.98 trillion JPY versus the projected 0.95 trillion JPY figure while the consumer confidence index fell short of estimates. The reading did improve from 38.8 to 39.1, a few points shy of market expectations at 39.4.

Only a couple of low-impact reports are lined up for today’s London trading session, which suggests that further consolidation might be seen. Germany is set to print its trade balance and possibly show a slightly larger surplus of 18.2 billion EUR while the euro zone will release its Sentix investor confidence and probably see an improvement from 0.9 to 3.4. Stronger than expected figures could still keep the euro afloat even with all the talks of a “Grexit” lately, 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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