Asian Session Forex Recap – Sept. 29, 2015

  • China’s State Administration of Foreign Exchange puts limits on annual cash withdrawals
  • German and Spanish preliminary CPI readings due

No news is good news? Not this time. The lack of top-tier releases during the Asian session left forex traders to dwell on the gloom and doom in China. Word through the grapevine is that the country’s State Administration of Foreign Exchange announced limits on annual cash withdrawals in order to prevent too much capital from exiting its banks.

With that, higher-yielders slumped in a risk-off mood while Asian equities are also sulking in the red. AUD/USD is down 44 pips and is nearing its yearly lows (-0.64%), NZD/USD is down 24 pips at the .6300 handle (-0.39%), AUD/JPY is lower by 88 pips and breaking below 83.00 (-1.05%), and NZD/JPY is lower by 56 pips to 75.28 (-0.78%). Yen pairs are generally lower, with USD/JPY down 48 pips at 119.42 (-0.41%).

The Aussie is also bleeding against its other comdoll peers, with AUD/CAD down 51 pips to the .9300 handle (-0.54%) and AUD/NZD down 26 pips to 1.1015 (-0.23%). European currencies are taking advantage of this Aussie selloff, with EUR/AUD up by 142 pips (+0.89%) and GBP/AUD up by 139 pips to 2.1850 (+0.64%).

Forex traders could turn their attention to the preliminary CPI releases from Germany and Spain, two of the euro zone’s largest economies, starting 7:00 am GMT. Price levels could log in a 0.1% dip in Germany while Spain could report a larger 0.6% decline in its flash CPI, possibly forcing the shared currency to return some of its recent wins.

As for the pound, the net lending to individuals and CBI realized sales data could provide additional volatility, although another batch of weak readings could spur more losses for the British currency.

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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