Asian Session Forex Recap – Nov. 5, 2015

  • RBA’s Stevens: next move would lean towards easing than tightening
  • Fed’s Fischer: inflation likely to rise on continued improvement in employment
  • BOJ minutes: inflation will continue to improve
  • “Super Thursday” from the Bank of England (BOE) eyed

A pretty thin trading environment for forex traders, as they only had central banker comments to process. Which currencies dominated the session?

Major events:

BOJ meeting minutes – Nothing new from the central bank. Kuroda and his gang have agreed that the BOJ’s quantitative and qualitative easing (QQE) program is getting its intended effects and that inflation will continue to improve. The BOJ also didn’t provide any timeline on its program, saying that QQE will continue until it sees a stable 2% inflation rate. Ho-hum.

Glenn Stevens’ speech – Reserve Bank of Australia (RBA) Governor Glenn Stevens caused the Aussie a bit of trouble in early Asian trading when he said that we’ll likely see an easing, not tightening, if the RBA does make any policy changes in the near term. Though he’s optimistic on the slight improvements outside the mining industry, he also cited that rate increases by major Australian banks have taken back some of the effects of the central bank’s easing measures. Not only that, but current inflation levels are also not hindering any rate cuts at the moment.

Major Currency Movers:

USD – The lack of market-moving events made it possible for dollar bulls to take off some of their profits ahead of tomorrow’s NFP report. If you’ve read my U.S. session recap, then you should know that the Greenback had bagged pips from positive reports from Uncle Sam. EUR/USD rose by 14 pips (+0.13%) throughout the session while USD/CHF slipped by 11 pips (-.011%) to .9932 and USD/JPY inched 6 pips lower to 121.51.

AUD – The comdoll started the session weak thanks to a somewhat dovish speech by Glenn Stevens. The Aussie bulls were able to rally though, and eventually inspired mid-session reversal across the board. AUD/USD dipped to a low of .7127 before going back up to .7150 while AUD/JPY fell to a low of 86.72 before recovering to 86.88.

Watch out for:

  • Swiss SECO consumer climate at 6:45 am GMT
  • German factory orders at 7:00 am GMT (expected at 1.1% vs. -1.8% previous)
  • UK Halifax house price index at 8:00 am GMT (expected at 0.7% vs. -0.9% previous)
  • Swiss CPI numbers at 8:15 am GMT (expected at -1.4% like last month)

See more:

U.S. Session Recap

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