Asian Session Forex Recap – Nov. 4, 2015

  • AU retail sales shows another 0.4% growth as expected
  • AU trade deficit: 2.32B AUD vs. 2.90B AUD expected, 3.10B AUD previous
  • China Caixin services PMI: 52.0 vs. 51.0 expected, 50.5 previous
  • AU AIG services index: 48.9 vs. 52.3 previous
  • UK BRC shop price index: -1.8% vs. -1.9% previous
  • Japan monetary base (y/y): 32.5% vs. 35.1% previous
  • Japan consumer confidence: 41.5 vs. 41.1 expected, 40.6 previous
  • Euro Zone services PMI reports due today

Japanese forex traders are back in the game and this time they’re buying up high-yielding currencies. Here are the major events during the Asian session.

Major events:

Australia’s data releases – A couple of hours ago the Land Down Under printed its retail sales and trade numbers and both passed market expectations. Retail sales popped up by another 0.4% in September following a rebound in August and a slip in July.

Meanwhile, trade deficit narrowed down to 2.32B AUD in September when market players had been expecting a 2.90B AUD deficit for the month and dealt with a 3.10B AUD deficit in August. A closer look reveals that the value of exports, led by a 10% export in gold, had risen by $901M (3.0%) while imports

China’s services PMI – Caixin’s services PMI release came in at 52.0 when market players had only been expecting a 51.0 figure. Caixin’s composite index also reflected improvement with its 49.9 reading in October after a 48.0 print in September. Both reports printed at their three-month highs and support speculations that the government’s stimulus measures are making impact in their industries.

Japanese traders are back – After yesterday’s Culture Day holiday, Japanese traders are back in the game and might have helped push high-yielding currencies higher with their start-of-month trades. What do you think?

Major Currency Movers:

AUD – Australia’s better-than-expected reports as well as China’s positive indices supported the supported the RBA’s recent less-dovish-than-expected policy statement and boosted the comdoll. AUD/USD reached a session high 25 pips higher (0.35%) than its open price while AUD/JPY is up by 16 pips (+0.18%) and AUD/NZD is up by 85 pips (+0.79%).

NZD – Still affected by the less favorable dairy auction results. NZD/USD is down 48 pips (-0.72%) to .6654 while NZD/JPY dropped by 46 pips (0.57%) and GBP/NZD is up by a nice 130 pips (+0.56%) to 2.3169.

USD and JPY – The overall risk-friendly trading environment took its toll on the low-yielding currencies. USD/JPY popped up to 121.38 before trading back down to 121.19 while EUR/USD recovered from its 1.0938 session low to trade at 1.0950. GBP/JPY also hit a high of 187.18 before settling down to 186.86.

Watch out for:

French Services PMI at 8:50 am GMT
German Services PMI at 8:55 am GMT
Euro Zone Composite PMI at 9:00 am GMT
Euro Zone Services PMI at 9:00 am GMT
UK Services PMI at 9:00 am GMT
Euro Zone PPI at 10:00 am GMT

See more:

U.S. Session Recap

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