Asian Session Forex Recap – Nov. 11, 2015

  • AU Westpac consumer confidence: 101.7 vs. 97.8 previous
  • China’s industrial production: 5.6% vs. 5.8% expected, 5.7% previous
  • China’s retail sales: 11.0% vs. 10.9% expected and previous
  • China’s fixed asset investment: 10.2% as expected vs. 10.3% previous
  • France on Armistice Day holiday

Another one bites the dust! The dollar continued to lose against its counterparts as Asian session traders squared off more long dollar trades ahead of China’s reports.

Major Events:

China’s data dump – Data revealed that industrial production grew by 5.6% in October from a year ago, lower than the expected 5.8% uptick. It also marks the slowest pace of growth since March. Fixed asset investment also came in at an annualized rate of 10.2%, a bit lower than last month’s 10.3% reading and is the slowest pace of growth since December 2000.

The silver lining came in the form of the retail sales report, which clocked in an 11.0% growth when analysts had expected a 10.9% uptick. Still, the mixed economic reports did little to ease concerns over a slowdown in the world’s second largest economy. If you recall, China printed weak trade data over the weekend and even weaker inflation report earlier this week.

Australia’s consumer confidence data – Consumer confidence in the Land Down Under printed at 101.7, its highest reading in six months. This is good news for the RBA, which hasn’t been shy in hinting at possible rate cuts down the road.

More dollar selling – There were no major catalysts explaining the dollar’s losses across the board, though some analysts say that more than a few traders are getting worried on the impact of a rate hike on Uncle Sam. Then again, we could also be seeing the impact of profit-taking from Friday’s gains as well as dollar selling from yesterday’s weak U.S. data.

Major Currency Movers:

USD – Whether it’s profit-taking from NFP gains, concerns over the impact of a rate hike, or dollar-selling from weak U.S. data, the Greenback continued to give up pips to its counterparts.

EUR/USD is up by 50 pips (+0.48%), USD/JPY is down by 31 pips (-0.25%), USD/CHF is down by 33 pips (-0.33%) and GBP/USD is down by 59 pips (-0.39%) ahead of the U.K.’s jobs data release. The Greenback also gave pips against the comdolls with NZD/USD popping up by 61 pips (+0.94%) and USD/CAD falling by 26 pips (-0.20%).

AUD – The Aussie gained pips across the board, possibly thanks to Australia’s better-than-expected consumer confidence reading. AUD/USD is up by 47 pips (+0.67%), AUD/JPY is up by 36 pips (+0.42%), and GBP/AUD is down by 63 pips (-0.29%).

Watch Out For:

  • Germany’s wholesale price index at 7:00 am GMT (expected to grow by 0.2% vs. 0.6% decline last month)
  • UK’s employment data at 9:30 am GMT. Read Forex Gump’s trading guide if you’re planning on trading the news releases!

See more:

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!