Asian Session Forex Recap – Apr. 9, 2015

  • Australian AIG Construction PMI: 50.1 vs. 43.9 previous
  • Bank of Japan Economic Survey shows moderate growth

The Aussie and Kiwi were on a tear during the Asia trading session, without a direct catalyst from Australia or New Zealand.  The buying was likely spurred by a combination of recent insights, one from the Bank of Japan showing that record stimulus is likely needed (and possibly needs to increase) to battle a stagnant economy and low inflation. Or it may be on a recent news report that China’s growth potential may be in the 7-8% range over the next decade.  Both stories are supportive of broad risk-on sentiment, an environment that both the Aussie and Kiwi tend to gain value in:

AUD/USD is up 10 pips (+0.12%) to .7692, NZD/USD is up 10 pips (+0.11%) to .7557

At the same time, the latest monthly economic survey from the Bank of Japan shows economy is still in a moderate recovery, which is likely the reason why there was no increase in easing in this week’s monetary policy. This could be the explanation for the rally in the yen off of earlier lows going into European trade.  USD/JPY is back down to 120.20 after testing highs around 120.37 and GBP/JPY is sliding lower to around 178.60  after testing highs around 179.05 during Asia trade.

European region currencies are set to pick up the pace with a busy forex calendar for both the euro and the British pound in the upcoming London forex trading session.

It begins at 7:00 am GMT with a slew of German economic data including industrial production, trade balance and current account data. At 8:00 am GMT, we’ll get hits of U.K. economic data in the form of the Halifax house price index data (0.1% forecast vs. -0.3% previous).

And to close out the data portion of our calendar for the European region, we’ll get the U.K. trade balance data (-£9B forecast vs. -£8.41B previous) at 9:30 am GMT. The U.K. trade balance data is the likely market mover among today’s group of potential economic catalysts, so be weary of that number when it’s released, especially if it breaks the trend of improving data.

Finally, the Bank of England’s Monetary Policy Committee (MPC) will give us their latest policy decision at 12:00 am GMT. This isn’t usually a market mover since they haven’t changed policy in quite some time, but if it does change expect a pretty large move across the board.

Good luck!

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!