Asian Session Forex Recap – July 24, 2015

  • Chinese Markit flash manu PMI down from 49.4 to 48.2 in July
  • Japanese flash manu PMI up from 50.1 to 51.4 vs. 50.5 consensus
  • German and French manufacturing and services PMI due

The Aussie suffered a heavy beating in today’s Asian forex trading session, thanks to a nasty one-two punch from China and gold prices. The world’s second largest economy reported a sharper contraction in its manufacturing sector for July, as the Markit flash PMI fell from 49.4 to 48.2 instead of improving to the projected 49.8 figure. Meanwhile, gold continued to lose its luster, as prices fell to a low of $1,075/ounce in the past few hours.

AUD/USD is down 64 pips (-0.86%) and has broken below the .7300 handle, AUD/JPY is down 82 pips (-0.92%) and is edging close to 90.00, EUR/AUD popped up by 133 pips (+0.89%), and GBP/AUD advanced by 211 pips (+1.01%).

Japan, the world’s top three economy, was having a much better day when it reported that the flash manufacturing PMI for July climbed from 50.1 to 51.4, outpacing the consensus at 50.5 and reflecting a faster pace of expansion in the industry. The yen scored a few gains after the release, with USD/JPY down by 8 pips (-0.08%), EUR/JPY down by 20 pips (-0.15%), and GBP/JPY down by 11 pips (-0.11%).

It’s still all about PMI readings today, with the euro zone’s largest economies set to print their manufacturing and services numbers. Germany is gunning for improvements in both sectors, with the manufacturing PMI slated to climb from 51.9 to 52.1 and the services PMI expected to rise from 53.8 to 54.1. France is expecting to see a climb in its manufacturing PMI from 50.7 to 51.1 but its services PMI is projected to fall from 54.4 to 54.2. The euro zone’s PMI figures are also up for release today, but these could be old news after the German and French readings spur most of the forex volatility among euro pairs starting 8:00 am GMT.

Also lined up today is the BBA mortgage approvals report from the U.K. at 9:30 am GMT. This report is expected to show an increase from 42.5K to 43.5K in home loans for June, which would reflect stronger housing demand and a potential increase in construction activity and home-related purchases down the line. Do keep your eyes and ears peeled for any other market updates or commodity price moves that could affect overall market sentiment!

See also:

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. 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!