Asian Session Forex Recap – Feb. 12, 2015

  • Australia lost 12.2K jobs in Jan vs. estimated 4.7K decline
  • Australia’s jobless rate up from 6.1% to 6.4%
  • Australian MI inflation expectations improved from 2.4% to 4.0%
  • Japanese PPI down from 1.8% to 0.3% y/y in Jan
  • Japan’s core machinery orders up by 8.3% y/y vs. estimated 2.4% gain

All eyes were on Australia’s jobs release in today’s Asian trading session, as the Land Down Under printed dismal readings and sparked talks of another RBA rate cut. The report revealed that the economy lost 12.2K jobs in January, worse than the estimated 4.7K drop in hiring. This was enough to bring the jobless rate up from 6.1% to its 10-year high of 6.4%.

It’s no surprise that Aussie pairs plummeted after the jobs release, with AUD/USD currently down by 62 pips (-0.81%) and AUD/JPY dropping by 90 pips (-0.97%). AUD/CAD broke down from its short-term consolidation and is down by 50 pips (-0.49%) while EUR/AUD is up 97 pips (+0.68%).

On a brighter note though, Australia’s MI inflation expectations report posted a noteworthy gain from 2.4% to 4.0%, signalling that price pressures are bound to pick up later on. In Japan, core machinery orders beat expectations with an impressive 8.3% annualized gain versus the projected 2.4% increase. However, the country’s PPI tumbled from 1.8% to 0.3% in January, hinting at weaker consumer inflation down the line.

The yen is treading higher against its counterparts, thanks also in part to risk aversion in the financial markets. USD/JPY is down 17 pips (-0.16%) but is finding support at the 120.00 handle, EUR/JPY is down 46 pips (-0.34%) and hovering around the 136.00 mark, and GBP/JPY is lower by 43 pips (-0.28%) at 183.00.

Forex traders might now turn their attention to the BOE Inflation Report hearings in today’s London trading session, as Governor Carney is slated to shed more light on the central bank’s economic assessment and outlook. Upbeat remarks could allow the British currency to regain ground so make sure you watch out for this event starting 11:30 am GMT. A pickup in volatility is expected among pound pairs so make sure your risk is being managed properly if you’ve got any trades open on those!

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!