Asian Session Forex Recap – Sept. 14, 2015

  • Chinese retail sales up by 10.8% y/y vs. 10.6% forecast, 10.5% previous
  • Chinese industrial production up by 6.1% y/y vs. 6.3% forecast, 6.0% previous
  • Chinese fixed asset investment up by 10.9% ytd vs. 11.2% forecast
  • Japanese industrial production down by 0.8% in July vs. estimated 0.6% dip
  • Japan’s July tertiary industry activity up by 0.2% as expected
  • Swiss PPI and retail sales due

Forex junkies probably opted to watch the more exciting U.S. Open finals showdown between Djokovic and my look-alike Federer since there was nothing much on the economic docket. Only a couple of reports were released from Japan and these were just backwards-looking data for the month of July.

Industrial production was down 0.8% during the month, downgraded from the initially reported 0.6% decline. Tertiary industry activity, which measures the change in total value of services availed by businesses, showed a measly 0.2% uptick as expected. Despite that, the Japanese yen managed to score a few gains, as risk appetite seemed weak so far.

USD/JPY is down 18 pips (-0.16%) to 120.40, EUR/JPY is down 12 pips (-0.09%) to 136.56, GBP/JPY is down 16 pips (-0.09%) to 185.84, and AUD/JPY is down 17 pips (-0.19%) to 85.31.

Comdolls are looking pale in today’s Asian trading session, as Chinese equities resumed their decline. Investors probably weren’t impressed by the small improvements reported over the weekend, as the headline readings from China still missed expectations. Retail sales showed a 10.8% annualized gain versus the previous 10.5% figure while industrial production was up 6.1% year-over-year from the earlier 6.0% reading. Fixed asset investment turned out to be a disappointment, churning out a 10.9% gain year-to-date instead of the estimated 11.2% increase.

AUD/USD failed to make headway past the .7100 handle and is down to the .7090 mark (-0.03%), NZD/USD is flat at the .6317 area, and USD/CAD is treading carefully around 1.3250.

Forex traders could turn their attention to the franc in the next few hours, with the Swiss PPI and retail sales data up for release. Producer prices are expected to have slipped by 0.4% in August while retail sales could recover to show a 1.5% annualized gain from the previous 0.9% decline. If the actual readings come in weaker than expected, the Swiss currency could be defeated like its country’s tennis star in today’s match.

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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