Asian Session Forex Recap – Oct. 23, 2015

  • Japanese flash manu PMI up from 51.0 to 52.5 in Oct
  • Chinese CB leading index improved from 1.0% to 1.6% in Sept
  • Euro zone PMIs lined up

The euro had enough time to lick its wounds in today’s Asian trading session, as forex traders probably booked profits off some of their post-ECB short positions. EUR/USD is struggling to hold on to the 1.1100 mark (+0.02%), EUR/JPY is finding support at 134.00 (-0.04%), and EUR/GBP is still a few pips above .7200 (+0.03%).

Only a couple of medium-tier reports were released in the past few hours, namely Japan’s flash manufacturing PMI which indicated a climb from 51.0 to 52.5 in October instead of the projected drop to 50.6 and the Chinese CB leading index which rose from 1.0% to 1.6%. Yen pairs barely budged upon seeing these numbers, with USD/JPY flat at 120.60, GBP/JPY holding on to 185.75 (+0.03%), and CAD/JPY stalling at 92.23 (+0.04%).

The Aussie managed to rake in some gains against its forex rivals, thanks to reports about mortgage rate hikes among the country’s top banks. This includes the likes of Westpac, ANZ, Commonwealth Bank of Australia, and the National Australia Bank. Analysts were quick to point out that this doesn’t necessarily mean that they’re giving room for the RBA to cut benchmark interest, as it just goes to show that commercial banks are taking the necessary measures to ensure that the housing boom doesn’t go bust.

AUD/USD is up 60 pips to .7265 (+0.83%), AUD/JPY is up 69 pips to 87.68 (+0.79%), and AUD/NZD is up 26 pips to 1.0626 (+0.25%). The Aussie also advanced against the European currencies, with EUR/AUD down 115 pips to 1.5289 (-0.75%) and GBP/AUD down 150 pips to 2.1187 (-0.71%).

Could the euro be gearing up for another bloodbath? The flash PMI readings from its top economies Germany and France are up for release starting 8:00 am GMT and lower readings are expected from both manufacturing and services industries. If so, forex junkies could be reminded that the ECB stands ready to pump up its easing efforts if necessary, potentially pushing the euro on another leg lower.

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U.S. Session Recap

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