Asian Session Forex Recap – Nov. 9, 2015

  • China trade surplus widened from 60.34B USD to 61.64B USD
  • AU ANZ job ads: 0.4% vs. 3.8% previous
  • Japan average cash earnings (y/y): 0.6% vs. 0.5% expected, 0.4% previous

Profit-taking from last Friday’s moves dictated forex price action in early Asian trading, as the Greenback lost pips against its counterparts despite bearish news from the markets.

Major Events:

Profit-taking from NFP flows? – Despite the other headlines that I’ll be listing below, price action largely points to profit-taking as the Greenback takes hits across the board. If you recall, the dollar got a double boost from strong U.S. jobs figures and market risk aversion following speculations that the Fed will indeed end the year with an interest rate hike.

China’s trade figures – As I’ve mentioned in my U.S. session update, China has printed worse-than-expected trade data over the weekend. Though trade surplus had widened, a closer look at the details shows that China’s exports had fallen for a fourth consecutive month as it gets weighed down by lower commodity prices, while tepid domestic demand is keeping a lid on China’s imports.

Mixed Asian markets – Not exactly a complete risk-on environment. Nikkei rallied by 2% while the Shanghai Composite popped up by 1.63%. Meanwhile, Australia’s S&P ASX slipped by 1.65% while Hong Kong’s Hang Seng index traded flat.

Major Currency Movers:

USD – The dollar bulls visibly took a breather from last Friday’s monster moves. Major dollar pairs gapped in favor of the dollar before showing recoveries. EUR/USD popped up by 32 pips (+0.30%) while GBP/USD also inched 10 pips higher (+0.07%) and USD/CHF slipped by 8 pips (-0.08%).

Comdolls – The comdolls also had a good day despite a not-so-rosy trade report from China and a lack of improvement in commodity prices. AUD/USD rose by 35 pips (+0.50%) while NZD/USD jumped by 50 pips (+0.77%) and USD/CAD slipped by 16 pips (-0.12%) to 1.3289.

JPY – Seems like the increased possibility of tightening in the U.S. highlighted the Fed’s divergence of policy stance against the BOJ. The yen continued to lose ground across the board with USD/JPY rising by another 16 pips (+0.13%) while EUR/JPY jumped by 57 pips (+0.43%) to 132.87 and GBP/JPY inched 38 pips higher (+0.21%). Even the comdolls bagged pips against the low-yielding currency with AUD/JPY popping up by 55 pips (+0.64%) and NZD/JPY rising by 73 pips (+0.91%).

Watch Out For:

  • Germany’s trade balance data at 7:00 am GMT (21B EUR trade surplus expected vs. 15.3B EUR surplus last month)
  • German current account numbers at 7:00 am GMT (expected at 21.9B EUR vs. 12.3B EUR previous)
  • Euro Zone Sentix investor confidence index at 9:30 am GMT (expected at 12.7 vs. 11.7 previous)

See more:

U.S. Session Recap

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