Asian Session Forex Recap – Oct. 5, 2015

  • World Bank downgraded growth forecasts for China and East Asia
  • ANZ Australian job advertisements up by 3.9% in Sept
  • Australia’s Sept MI inflation gauge up from 0.1% to 0.3%
  • Japanese average cash earnings up by 0.5% vs. 0.7% forecast
  • U.K. services PMI to climb from 55.6 to 56.4?

It looks like forex traders ain’t done dumping the dollar! After Friday’s NFP letdown, the Greenback opened lower in Monday’s trading and resumed its decline. EUR/USD kicked off at 1.1216 and is up 30 pips (+0.26%), GBP/USD advanced past the 1.5200 handle and is up 38 pips (+0.25%), and USD/CHF is testing support at .9700 (-0.03%).

Not even the World Bank’s decision to downgrade growth forecasts for China and East Asia was enough to renew the dollar’s safe-haven appeal, as market participants continued to price in lower odds of a Fed liftoff before the end of the year. The institution predicts that the world’s second largest economy will expand by only 6.7% instead of their initial 7.0% forecast.

Despite that, the Australian dollar managed to gain traction in today’s Asian session since ANZ reported that job advertisements surged by 3.9% in September while the MI inflation gauge climbed from 0.1% to 0.3%. AUD/USD is up 17 pips to .7065 (+0.25%), AUD/JPY is up 26 pips to 84.74 (+0.31%), EUR/AUD is flat at 1.5900 (+0.01%), and GBP/AUD is down 10 pips to 2.1528 (-0.04%).

The Japanese yen is also giving up ground to its forex rivals since Japan just reported a meager 0.5% increase in its average cash earnings for August, lower than the projected 0.7% gain and the previous 0.9% rise. USD/JPY is up 10 pips and testing the resistance at 120.00 (+0.09%), EUR/JPY is up 45 pips to 134.78 (+0.32%), GBP/JPY is up 56 pip to 182.52 9 (+0.30%), and NZD/JPY is up 37 pips to 77.64 (+0.48%).

As for the pound, the British currency might be in for more action in the next few hours, as the U.K. is  set to print its services PMI at 9:30 am GMT. Analysts are expecting to see a climb from 55.6 to 56.4, reflecting a faster pace of industry expansion and possibly resulting to a stronger pound rebound (Hey, that rhymes!) since the services sector contributes a huge chunk to overall economic activity. Be on the lookout for final services PMI readings from the euro zone’s top economies as well!

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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