Asian Session Forex Recap – Dec. 4, 2015

  • NZ ANZ commodity prices: -5.6% vs. 7.1% previous
  • AU retail sales: 0.5% vs. 0.4% expected and previous
  • Japan average cash earnings: 0.7% vs. 0.4% expected and previous
  • Japan consumer confidence: 42.6 vs. 41.8 expected, 41.5 previous

Forex price action was as exciting as watching water boil, as traders refrained from committing to positions ahead of today’s NFP report.

Major Events:

Australia’s retail sales meets expectations – Retail sales in the Land Down Under showed improvement for a third month in a row in October, this time clocking in a 0.5% uptick. Analysts had been expecting a 0.4% rise just like last month.

A closer look tells us that it was the 3.5% increase in department store sales that helped lift the stats, along with a 1.1% increase in household good sales and 0.6% uptick in food retailing. The reports support theories that the RBA’s low interest rates are helping support consumer spending.

Small profit-taking – Whether it’s profit-taking from yesterday’s ginormous moves or a bit of risk aversion on the back of the ECB’s latest move to increase stimulus, the higher-yielding currencies took hits across the board. Even the Asian session bourses took a break in the red with Nikkei down by 2.26%, Shanghai index down by 1.19%, Hang Seng down by 1.12%, and ASX down by 1.65%.

Tight pre-NFP ranges – Like in most NFP days, volatility was limited in major currency pairs. This doesn’t mean that we won’t see any action during the release though. Just take a look at Forex Gump’s trading guide to see what happened to the dollar’s price action last month!

Major Currency Movers:

USD – The Greenback gained a couple of pips across the board, either due to a slight risk aversion in the markets or traders finally paying attention to Yellen’s hawkish remarks yesterday. In any case, USD/JPY popped up by 25 pips (+0.20%), USD/CHF inched 40 pips higher (+0.41%), and GBP/USD slid by 24 pips (-0.16%).

AUD – The comdoll failed to gain support from forex traders despite a favourable Australian retail sales release. AUD/USD slipped by 29 pips (-0.40%) as AUD/JPY inched 15 pips (-0.17%) lower.

EUR – The common currency started the session by taking a few pips back across the board, but eventually recovered some of its session losses.

EUR/USD fell to a session low of 1.0900 before finishing at 1.0940 while EUR/GBP fell to .7208 before climbing back up to .7230. Heck, even EUR/JPY managed to sneak up to 134.07 after falling to 133.76!

Watch Out For:

  • 7:00 am GMT: German factory orders (1.2% expected vs. -1.7% previous)
  • 8:15 am GMT: Swiss CPI report (0.0% expected vs. 0.1% previous)
  • More tight ranges ahead of Canada and Uncle Sam’s employment reports

See more:

U.S. Session Forex Recap

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