Asian Session Forex Recap – Mar. 9, 2015

  • Chinese trade surplus widened from 60B USD to 60.6B USD in Feb
  • Japanese current account surplus at 1.06T JPY vs. 1.16TJPY estimate
  • Japan’s final GDP reading downgraded from 0.6% to 0.4%
  • ANZ job advertisements up by 0.9% in Australia, lower than previous 1.2% gain

Are dollar bulls just taking a break before charging across the forex charts again? European currencies made a bit of a recovery against the Greenback while the comdolls and the Japanese yen continued to bleed. EUR/USD is trying to hold on to the 1.0850 handle (+0.01%), GBP/USD is up 44 pips (+0.29%), and USD/JPY is testing resistance at 121.00 (+0.22%).

Weak data from Japan weighed on the yen at the start of the trading session, as the Japanese current account balance came in short of the estimate at 1.16 trillion JPY and landed at 1.06 trillion JPY. The final GDP reading for Q4 2014 was downgraded from 0.6% to 0.4%, reminding forex market watchers that the Japanese economy might need further stimulus.

Over the weekend, China printed a stronger than expected trade balance report, which indicated a surplus of 60.6 billion USD versus the estimated 7.8 billion USD reading. This was also wider than the previous 60 billion USD trade surplus, with exports surging by close to 50% year-over-year in February. What hurt the commodity currencies though was the fact that imports tumbled by a whopping 20.5% during the same period, reflecting significantly weaker demand from the world’s second largest economy.

Not even the 0.9% uptick in ANZ job advertisements was able to put the Australian dollar in a better mood, as AUD/USD is facing a 15-pip loss (-0.18%) and AUD/JPY is flat around the 93.00 handle. NZD/USD is down 13 pips (-0.14%) and USD/CAD is consolidating above the 1.2600 mark (0.01%).

With the forex calendar indicating a data-light London trading session up ahead, traders could focus on risk flows in the next few hours. It seems that the latest NFP release has renewed speculations of Fed tightening in June, which isn’t looking too good for higher-yielding currencies and equities so far. In any case, stay on your toes for any updates that might affect sentiment!

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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