Asian Session Forex Recap – Sept. 8, 2015

  • Australia’s Aug NAB business confidence index down from 4 to 1
  • Chinese trade surplus rose from 43B USD to 60.2B USD in Aug
  • Chinese exports down by 5.5%, imports down by 13.8%
  • Japanese Q2 2015 GDP revised from -0.4% to -0.3%
  • Japanese current account balance widened to 1.32T JPY

Hello volatility! The return of U.S. traders fresh from their Labor Day holiday brought more action to the forex arena, spurred also by top-tier data from China and Australia. In the Land Down Under, the NAB business confidence index dropped from 4 to 1 in August, reflecting a downturn in confidence.

Over in China, the trade balance showed a wider surplus of 60.2 billion USD in August compared to the previous 43 billion USD, surpassing estimates of a 48.6 billion USD surplus. Don’t let the headline figures fool you, though! Underlying components of the report revealed that exports slumped by 5.5% while imports were down by a whopping 13.8%, confirming that demand has weakened significantly.

Even so, AUD/USD is holding on to a 30-pip gain to .6960 (+0.50%), AUD/JPY is up 25 pips to 82.85 (+0.32%), and AUD/NZD is up 20 pips to the 1.1080 level (+0.17%).

Perhaps the small pickup in risk appetite stemmed from the positive reports out of Japan, as the Q2 GDP reading was revised to show a smaller contraction of 0.3% from the previous -0.4% figure. Meanwhile, the country’s current account surplus widened from 1.30 trillion JPY to 1.32 trillion JPY instead of narrowing to the projected 1.25 trillion JPY reading.

USD/JPY is down 26 pips and is testing the 119.00 handle (-0.23%), EUR/JPY is up 17 pips to 133.42 (+0.13%), and GBP/JPY is up 12 pips to 182.20 (+0.07%).

Only a few medium-tier reports are on today’s docket for the London trading session, with Switzerland set to print its jobless rate at 6:45 am GMT and the euro zone’s top two economies, Germany and France, scheduled to release their trade balance reports starting 7:00 am GMT. The Swiss jobless rate is slated to hold steady at 3.3% but any moves in either direction could push the franc around. Stay on your toes!

U.S. Session Recap

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