Asian Session Forex Recap – May 26, 2015

  • New Zealand posted larger-than-expected trade surplus of 123M NZD for April
  • New Zealand March trade surplus upgraded from 631M NZD to 754M NZD
  • Japan’s services producer price index up 0.7% y/y in April vs. 0.6% estimate
  • Swiss employment level and U.K. CBI realized sales data due today

And forex traders are back in the game! The Asian trading session was off to an action-packed start, with the euro once again getting slammed thanks to stronger speculations about a debt default.

EUR/USD dipped to a low of 1.0927 and is facing a 45-pip loss (-0.41%), EUR/JPY is lower by 23 pips (-0.17%) and is closing in on the 133.00 handle, and EUR/NZD is down by a whopping 64 pips (-0.42%).

The Kiwi managed to draw a bit of support from better-than-expected trade figures, as the surplus for April came in at 123 million NZD versus expectations of a 105 million NZD reading. Components of the report indicated a 5.5% decline in exports, mostly due to the slump in the dairy industry, but the New Zealand dollar found comfort in the 2% pickup among non-dairy shipments. Aside from that, the previous month’s reading was revised up from a surplus of 631 million NZD to 754 million NZD.

NZD/USD is up 6 pips (+0.08%) and is holding steady above .7300 while NZD/JPY is higher by 29 pips (+0.33%) and is advancing past the 89.00 mark.

In Japan, the services producer price index printed a stronger-than-expected 0.7% annualized gain for April compared to the projected 0.6% uptick. This could set the tone for better inflation readings due later on this week, underscoring the BOJ’s relatively upbeat policy stance.

USD/JPY is enjoying a healthy 33-pip gain (+0.27%) and is within striking distance of its yearly highs around the 122.00 handle. GBP/JPY is up 26 pips (+0.14%) and AUD/JPY is higher by 32 pips (+0.35%) so far.

Up ahead, the forex calendar shows that only a couple of medium-tier reports are lined up, namely the U.K. CBI realized sales index and Switzerland’s employment level. The former is expected to show an improvement from 12 to 18 in May, which would reflect higher sales volumes among British retailers. Meanwhile, Switzerland could show a decline in its employment level from 4.23 million to 4.21 million in the first quarter. As always, keep your eyes and ears peeled on any market updates that might also influence risk sentiment!

U.S. Session Recap

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