Asian Session Forex Recap – June 8, 2015

  • Japan’s Q1 GDP upgraded from 0.6% to 1.0%
  • Japanese current account surplus narrowed from 2.07T JPY to 1.27T JPY
  • Chinese trade surplus widened from 34.1B USD to 59.5B USD for May
  • Exports in China slipped by 2.8%, imports tumbled by 18.1%
  • German industrial production and euro zone Sentix investor confidence index due

Dollar domination, baby! The U.S. currency continued to advance against its forex rivals in today’s Asian trading session, fueled mostly by stronger Fed rate hike expectations for September. EUR/USD gapped down over the weekend and is breaking below the 1.1100 handle (-0.07%), GBP/USD also started the week with a downward gap but is flat at the moment, and USD/JPY is stalling at the 125.50 minor psychological resistance (+0.02%).

The Japanese yen was able to pause from its slide, thanks to a positive revision in the country’s Q1 GDP figure from 0.6% to 1.0%. This led Japanese officials to be more hopeful about Japan’s economic prospects, with Finance Minister Aso citing that domestic demand is starting to pickup and Chief Cabinet Secretary Suga saying that business investment is showing green shoots.

Elsewhere in Asia, more signs of trouble popped up in China even though the economy printed a stronger than expected headline trade balance for May. Looking closer at the components of the report showed that exports slipped by 2.8% during the period, marking their third consecutive monthly decline, while imports tumbled by 18.1%. That downturn in demand can’t be good for Australia’s raw material commodity shipments to its trading BFF!

AUD/USD is currently testing the long-term support at the .7600 handle and is down 24 pips (-0.21%), AUD/JPY is facing a 20-pip loss at 95.50 (-0.20%), and AUD/CAD is lower by 13 pips (-0.13%). The Aussie also weakened against its European forex rivals, with EUR/AUD up 22 pips (+0.16%) and GBP/AUD higher by 16 pips (+0.08%).

Up ahead, forex traders could turn their attention to the medium-tier reports lined up from the euro zone, namely Germany’s industrial production data and the region’s Sentix investor confidence figure. The euro zone’s largest economy could show a 0.6% rebound in industrial production after printing a 0.5% decline in the previous month while investor confidence could dip from 19.6 to 18.9 in June, probably due to the looming possibility of a Greek debt default.

Speaking of Greece, make sure you check out my buddy Forex Gump’s primer on the debt talks and don’t forget to keep your eyes and ears peeled for any relevant updates that could push euro pairs around today.

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!