Asian Session Forex Recap – Oct. 15, 2015

  • Australian economy lost 5.1K jobs in Sept vs. projected 7.2K gain
  • Australia’s unemployment rate unchanged at 6.2%
  • MI inflation expectations up from 3.2% to 3.5% in Australia
  • Australian new motor vehicle sales rebounded by 5.5% in Sept
  • Japan’s industrial production figure downgraded from -0.5% to -1.2%
  • Japanese tertiary industry activity up by 0.1% as expected

Dollar-shaming was the name of the forex game in today’s Asian trading session, with the Greenback still reeling from dismal U.S. retail sales data. The Aussie sold off briefly after seeing weaker-than-expected jobs data from Australia but was able to resume its rally thanks to a couple of upbeat medium-tier reports.

The Land Down Under lost 5.1K jobs in September instead of showing the estimated 7.2K increase in employment, but the unemployment rate was able to hold steady at 6.2% due mostly to a drop in labor force participation. Soon after, Australia reported an improvement in its MI inflation expectations index from 3.2% to 3.5% and an impressive 5.5% rebound in new motor vehicle sales, allowing AUD to stay afloat.

AUD/USD dipped close to the .7300 handle after the jobs release but is now up 35 pips to .7331 (+0.48%), AUD/JPY is up 34 pips to the 87.00 handle (+0.40%), EUR/AUD is down 40 pips to 1.5668 (-0.25%), and GBP/AUD is down 75 pips to 2.1120 (-0.36%).

In Japan, the industrial production figure for September suffered a huge downgrade from the initially reported 0.5% decline to a sharper 1.2% tumble. The tertiary industry activity index posted a feeble 0.1% uptick but it wasn’t enough to keep forex junkies buzzing about the increased likelihood of further easing from the BOJ.

Still, the Nikkei managed to end the session with a 1.15% gain, possibly because investors are anticipating that additional stimulus would lead to a stronger business outlook. USD/JPY popped up to retest the 119.00 handle and is down 10 pips to 118.74 (-0.07%), EUR/JPY is up 13 pips to 136.46 (+0.10%), and GBP/JPY is still hovering close to the 184.00 handle (+0.02%).

There are no major reports lined up for the London trading session, leaving forex market watchers to price in expectations for the upcoming U.S. CPI releases. Be on the lookout for any events that might affect market sentiment though!

U.S. Session Recap

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