Asian Session Forex Recap – Oct. 9, 2015

  • Australian Aug home loans up 2.9% vs. 4.9% estimate
  • New Zealand credit card spending up 0.9% in Sept vs. 0.4% previous

Risk on, baby! Higher-yielding currencies continued to rake in their forex gains in today’s Asian session after the September FOMC minutes suggested that borrowing costs might stay low for much longer. Heck, the Aussie still managed to outpace most of its forex rivals, even though Australia’s home loans report indicated a weaker-than-expected 2.9% gain in August versus the projected 4.9% jump.

AUD/USD is up 23 pips to .7282 (+0.33%), AUD/JPY is up 31 pips to 87.38 (+0.37%), EUR/AUD is down 36 pips to 1.5494 (-0.23%), and GBP/AUD is down 25 pips to 2.1104 (-0.12%).

The Kiwi also joined the fray, thanks to a stronger-than-expected 0.9% increase in credit card spending activity for September, higher than the previous 0.4% uptick. NZD/USD is up 14 pips to .6675 (+0.20%), NZD/JPY is up 18 pips to the 80.00 handle (+0.22%), EUR/NZD is down 10 pips to the 1.6900 mark (-0.09%), and GBP/NZD is flat at .2300.

Asian equities are currently in the green, indicating that investors are cheering the Fed’s decision to take it easy in light of the ongoing slowdown in China. European equities are also expected to open higher, although the upcoming medium-tier reports from the U.K. and the euro zone might still shake things up.

France and Italy are set to print their latest industrial production figures at 7:45 am GMT, with the former expected to show a 0.6% gain and the latter likely to report a 0.3% decline. The U.K. will release its August trade balance at 9:30 am GMT and might show a smaller deficit of 10 billion GBP compared to the previous 11.1 billion GBP shortfall, indicating a slight pickup in exports. Weaker than expected data could force the euro and the pound to retreat, especially since the ECB minutes and BOE statement yesterday seemed downbeat.

U.S. Session Recap

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