Asian Session Forex Recap – Nov. 23, 2015

  • NZ visitor arrivals: 0.2% vs. 4.4% previous
  • Japan on Labor Thanksgiving Day holiday
  • Japan to consider 3% minimum wage boost?
  • PBoC sets yuan midpoint to weakest since August 31

Forex price action was a mixed bag of nuts, as a lack of major economic data paved the way for a bit of profit-taking and extension of yesterday’s moves.

Major Events:

Dollar domination – The week started with a bang, as a lack of reports focused investor attention to the Fed’s sudden, closed-door meeting in a few hours. Not surprisingly, the forex grapevines came alive with speculations that the Fed would announce its interest rate hike some time this week (if not today). Yipes!

Steep declines in commodity prices – Commodities fell sharply during the Asian session thanks to investors’ concern that China’s slowing growth might affect their overall demand. Copper fell below $4,500 for the first time since May 2009 while Nikkel lost 5% and fell to its lowest since 2003.

Even gold prices suffered though that might have more to do with the increased possibility of a rate hike than news on China. Surprisingly, the Asian markets in general barely reacted to these moves with Shanghai up by 0.39%, the ASX up by 0.38%, and the Hang Seng index only down by 0.03%.

Japan on a bank holiday – Our friends from Japan are celebrating Labor Thanksgiving holiday and are probably the reason why volatility popped up to start the week. Will the Asian session trends continue on to London and U.S. session trading?

Major Currency Movers:

USD – The dollar simply dominated today’s Asian session forex scene with EUR/USD falling by 22 pips (-0.21%), GBP/USD slipping by 16 pips (-0.11%), USD/JPY popping up by a nice 40 pips (+0.33%), and USD/CHF rising by 19 pips (+0.19%).

Comdolls – The Aussie and Kiwi, both huge benefactors of the dollar’s decline last week, got a back-to-back kick of dollar strength and weakness in commodities.

AUD/USD fell by 54 pips (-0.75%) and AUD/JPY plummeted by 37 pips (-0.42%) while NZD/USD slipped by 45 pips (-0.69%) and NZD/JPY fell by 29 pips (-0.36%). Heck, even the Loonie got hit with USD/CAD popping up by 58 pips (+0.44%) and CAD/JPY inching 11 pips lower (-0.12)!

Watch Out For:

  • 800 am GMT French flash manufacturing and services PMIs
  • 8:30 am GMT German flash manufacturing and services PMIs
  • 9:00 am GMT Euro Zone flash manufacturing and services PMIs

See more:

U.S. Session Recap

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