Asian Session Forex Recap – Nov. 18, 2015

  • AU MI leading index shows another 0.1% growth
  • AU CB leading index: -0.1% vs. -0.4% previous
  • Risk appetite took hits on reports of bomb threats, gunfire

The dollar scored for another trading session, thanks to forex traders pricing in a December Fed rate hike and overall risk aversion in the markets.

Major Events:

Violence-related risk aversion – Forex traders flocked to low-yielding currencies and Asian markets momentarily took small hits when terrorism-related bits and pieces permeated the markets. For starters, two Air France flights to Paris, one from LA and one from Washington, DC, had to be diverted due to possible bomb threats. No injuries or damages were reported. Then, a couple of hours later reports of “heavy gunfire” in the northern suburbs of Paris were reported with accounts of police injuries. Yipes!

Mixed commodity prices – Gold dropped further during the session thanks to increased possibilities of a Fed rate hike in December. Meanwhile, oil prices took a breather after an EIA oil report reflected falling inventories. Even dairy prices weighed on the Kiwi after a miss in the latest dairy auction hinted at lower milk payout prices.

Major Currency Movers:

USD – The low-yielding Greenback took advantage of a double whammy of overall risk aversion and increased probabilities of a Fed rate hike. EUR/USD 9 pips lower (-0.09%) while GBP/USD is down by 12 pips (-0.08%) and AUD/USD is down by 24 pips (-0.34%).

JPY – Like its fellow low-yielding currencies, the yen was one of the top dogs of the trading session. A mild risk aversion and a strong Nikkei performance boosted demand for the yen. USD/JPY is down 8 pips (-0.07%), EUR/JPY is down by 22 pips (-0.16%), GBP/JPY is down by 27 pips (-0.14%), and AUD/JPY is down by 36 pips (-0.41%).

Watch Out For:

  • 10:00 am GMT – Switzerland ZEW economic expectations
  • Updates on today’s violence-related events

See more:

U.S. Session Recap

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