Asian Session Forex Recap – Nov. 13, 2015

  • Japan revised industrial production up to 1.1% vs. 1.0% initial reading
  • Japan capacity utilization: 1.5% vs. -0.9% previous
  • Japan tertiary industry activity: -0.4% vs. 0.1% expected and previous

Major Events:

Japan’s economic data – Japan’s industrial production numbers were revised from 1.0% to 1.1% while capacity utilization also inched higher a 0.9% decline to a 1.5% uptick. Though not exactly the bombshells that forex traders are looking for, the better-than-expected reports helped prop the yen up against its counterparts.

Lower commodity prices weigh on Asian markets – The forex space is a big muddled at the moment, probably because all the action is in the equities market. Asian markets in general saw red after yesterday’s non-committal statements from the Fed increased rate hike speculations in December. Not only that, but commodities also entered into the mix. A larger-than-expected crude stockpiles report from the U.S. weighed on crude oil prices while increased rate hike speculations and concern over China’s growth dragged gold prices lower.

Nikkei is down 0.51%, Hang Seng is down 2.17%, S&P/ASX 200 is down 1.45%, and Shanghai Composite Index is down 0.87%. Talk about a bloodbath!

Major Currency Movers:

USD – The dollar’s price action was mixed with EUR/USD ending the session almost unchanged after hitting a session high of 1.0830 while GBP/USD slipped by 12 pips (-0.08%). The low-yielding currency had better luck against the dollar with USD/JPY staying around the 122.50 levels while USD/CHF traded just above parity.

Comdolls – The sea of red in Asian equities didn’t stop comdoll traders from taking on risk. AUD/USD popped up by 13 pips (+0.18%) while NZD/USD traded 3 pips higher (+0.05%) throughout the session.

Watch Out For:

  • 6:30 am GMT French GDP (expected at 0.3% vs. 0.0% previous)
  • 7:00 am GMT German preliminary quarterly GDP (expected at 0.3% vs. 0.4% previous)
  • 8:15 am GMT Swiss PPI report (expected at -0.2% vs. -0.1% previous)
  • 9:00 am GMT Italian GDP report (expected at 0.3% vs. 0.2% expected)
  • 10:00 am GMT Euro Zone quarterly GDP (expected at 0.4% like last month)
  • 10:00 am GMT Euro Zone trade balance numbers (expected to show 19.3B EUR surplus vs. 19.8B EUR surplus last month)

See more:

U.S. Session Recap

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