Asian Session Forex Recap – June 11, 2015

  • RBNZ cut interest rates by 0.25% to 3.25%
  • RBNZ: Further easing moves likely, Kiwi is still overvalued
  • Australia added 42K jobs in May, higher than projected 12.1K gain
  • Australian jobless rate down from 6.1% to 6.0% in May
  • Japan’s BSI manufacturing index slipped from 2.4 to -6.0 vs. 3.2 consensus
  • Chinese industrial production climbed from 5.9% to 6.1% y/y in May
  • Chinese retail sales up from 10.0% to 10.1% y/y in May

Surf’s up, mates! Aussie pairs rode the bullish forex wave spurred by stronger than expected jobs data from the Land Down Under, as the economy added 42K jobs in May. This was loads better than the projected 12.1K increase and was enough to bring the country’s jobless rate down to its one-year low of 6.0%.

AUD/USD popped up to a high of .7789 after the results were printed and is holding on to a 10-pip lead (+0.12%) while AUD/JPY advanced by 51 pips (+0.53%). EUR/AUD is down 20 pips (-0.13%) and is testing support at the 1.4550 minor psychological level while GBP/AUD is lower by 50 pips (-0.25%).

The Aussie drew additional support from the Chinese data dump, which showed small improvements in industrial production and retail sales figures. On an annualized basis, industrial production is up 6.1% in May while retail sales logged in a 10.1% gain. However, fixed asset investment dipped from 12% to 11.4% in the same month.

The Kiwi is still reeling from the RBNZ’s decision to cut interest rates by 0.25% during the wee hours of the U.S. trading session, with NZD/USD down 170 pips (-2.44%) and NZD/JPY lower by 189 pips (-2.14%). AUD/NZD is up by a whopping 322 pips (+3.01%) and counting.

In Japan, the BSI manufacturing index recorded a nasty tumble from 2.4 to -6.0 instead of improving to the projected 3.2 figure, reflecting pessimism among large manufacturers in the country. This could translate to a reduction in investment and hiring later on so don’t say I didn’t warn y’all!

The forex calendar shows that the coast is clear in terms of top-tier economic data in the next few hours so a bit of consolidation might be seen, as traders brace themselves for the U.S. retail sales release later on. Of course the lack of major event risks could also keep the ongoing Kiwi selloff and Aussie rally in play against the European currencies so the crosses could still provide excellent profit opportunities. Just make sure you keep an ear out for any possible updates coming from Greece!

 

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!