Asian Session Forex Recap – Sept. 18, 2015

  • RBA Stevens: Fed rate hike still possible this year
  • RBA Stevens: Not worried about AUD exchange rate for now
  • BOJ minutes: Weakness in exports and output only temporary
  • Euro zone current account balance coming up

It looks like dollar bears weren’t in the mood for an afterparty! The U.S. currency managed to recoup some of its recent forex losses in the past few hours following the Fed’s decision to keep rates unchanged. EUR/USD is down 24 pips to the 1.1400 mark (-0.21%), GBP/USD is down 16 pips to 1.5572 (-0.10%), and USD/CHF is up 15 pips to the .9610 area (+0.16%).

The Aussie was still able to keep advancing against the dollar when RBA Governor Stevens mentioned in his testimony today that he isn’t too worried about the currency’s gains just yet. He added that the Australian economy is seeing some improvements in employment and non-mining activity, predicting that exports could recover over the next few years.

AUD/USD is up 30 pips to the .7393 area (+0.41%), AUD/JPY is up 15 pips to 86.20 (+0.14%), and AUD/NZD is up 27 pips to 1.1300 (+0.24%).

The freshly released BOJ minutes echoed the upbeat sentiment from Governor Stevens, as the transcript revealed that policymakers believe that the slowdown in exports and output is only temporary. BOJ officials were concerned about the potential risks from China and emerging economies, but they reiterated that improvements are likely in the longer run.

With that, the Japanese yen was able to outpace its forex peers in today’s Asian session, with EUR/JPY down by 57 pips to 136.64 (-0.42%), GBP/JPY down by 38 pips to 186.57 (-0.21%), and CAD/JPY down by 10 pips just below the 91.00 handle (-0.09%).

There are no top-tier reports lined up in the London trading session, with only the euro zone current account balance on the docket. The surplus is expected to narrow from 25.4 billion EUR to 21.3 billion EUR, possibly reflecting a downturn in trade activity. Weaker than expected data could remind forex participants that the ECB is willing to ease monetary policy if necessary, which could spur further losses for the euro.

Other than that, be on the lookout for potential profit-taking scenarios ahead of the weekend. Stay on your toes!

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!