Asian Session Forex Recap – Apr. 22, 2015

  • Australia’s headline CPI up by 0.2% in Q1 2015 as expected
  • Australian trimmed mean CPI showed 0.6% quarterly gain as expected
  • Japan’s trade deficit narrowed from 0.57T to 0.0T JPY in Mar
  • BOE minutes up for release

All eyes were fixed on the Aussie once more, as the currency made an impressive comeback in the forex market after Australia’s inflation readings were released. The headline reading came in line with expectations of a 0.2% gain for the first quarter of this year while the trimmed mean CPI, which excludes volatile items such as food and energy, printed a 0.6% increase as expected.

AUD/USD bounced off its intraday lows around .7711 after the release and is up 60 pips (+0.79%) while AUD/JPY is edging close to the 93.00 handle and is trading 63 pips higher (+0.63%). The Aussie also advanced against its other forex counterparts, with EUR/AUD down 102 pips (-0.74%) and GBP/AUD lower by 129 pips (-0.67%).

Data from Japan was also better than expected today, as the trade balance printed a flat reading from the previous 0.57 trillion JPY deficit. Analysts had expected to see a 0.41 trillion JPY shortfall, leading the yen to draw support from the actual release. USD/JPY is down 13 pips (-0.11%), EUR/JPY is lower by 15 pips (-0.12%), and GBP/JPY is trading 11 pips lower (-0.06%).

The forex calendar suggests that it will be the pound’s turn to take center stage in today’s London trading session with the BOE minutes up for release at 9:30 am GMT. Any change in rhetoric could have a strong impact on pound price trends, as a shift to a more dovish bias could spark a sharp selloff. Bear in mind that policymakers were worried about weak inflation and the rising pound in their previous meeting and that these sentiments could be echoed in the latest minutes.

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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