Asian Session Forex Recap – Dec. 10, 2015

  • Japan PPI: -3.6% vs. -3.8% expected and previous
  • Japan BSI manufacturing index: 3.8 vs. 12.1 expected, 11.0 previous
  • UK RICS house price balance: 48% as expected vs. 49% previous
  • AU MI inflation expectations: 4.0% vs. 3.5% previous
  • AU unemployment rate: 5.8% vs. 6.0% expected, 5.9% previous
  • AU employment change: +71.4K vs. -10K expected, +58.3K previous

The comdolls dominated the Asian session, as forex traders priced in the RBNZ’s latest decision and Australia’s stellar jobs numbers.

Major Events:

RBNZ cuts rates as expected – As I mentioned in my U.S. session recap, RBNZ Governor Wheeler and his gang cut their rates by 0.25% to 2.50%, a move that has been anticipated by many market players. This is probably why we saw a buy-the-rumor, sell-the-news situation hours after the decision was printed.

Australia’s back-to-back jobs data surprise – For a second month in a row, Australia’s employment numbers smashed through analyst expectations and printed optimistic numbers. Here’s a breakdown off all the things you need to know:

  • A net of 74,000 jobs were created in November against expectations of a net loss of 10,000 jobs. This is the largest monthly increase since the Sydney Olympics in 2000.
  • Unemployment rate fell from 5.9% to 5.8%, the lowest since November 2003. Analysts were expecting an uptick to 6.0%.
  • Full-time employment gained a net of 41,600 while part-time jobs ticked higher by 29,800.
  • Average hours slipped by 0.8%.

Major Currency Movers:

AUD – Though doubts on Australia’s job figures surfaced, it didn’t stop the Aussie from dominating its forex counterparts during the session.

AUD/USD zoomed up by 123 pips (+1.71%) to a session high of .7334 before settling down to .7334 while AUD/JPY also popped up by 177 pips (+2.03%) before the bulls caught their breaths. EUR/AUD also saw a 186-pip drop to 1.5106 while GBP/AUD fell by 205 pips (-0.97%) to 2.0822.

NZD – The Kiwi was anything but flightless during the session, as traders likely took profits from their RBNZ rate cut bets. Of course, it didn’t hurt that Wheeler didn’t flex his dovish feathers any more than necessary to communicate the RBNZ’s decision. NZD/USD capped the session 70 pips higher (+1.05%) while NZD/JPY also jumped by 145 pips (+1.80%).

USD – The dollar wrestled back a few pips from its major counterparts following yesterday’s bloodbath across the board. EUR/USD slipped by 18 pips (-0.16%), USD/JPY rose by 49 pips (+0.40%), and USD/CHF inched 15 pips higher (+0.15%).

Watch Out For:

  • 7:45 am GMT: French CPI (0.0% expected, 0.1% previous)
  • 8:30 am GMT: SNB monetary policy decision (expected to keep its policies steady though likely with a bit of jawboning)
  • 9:30 am GMT: U.K. trade balance report (-9.6B GBP vs. -9.3B GBP previous)
  • 12:00 pm GMT: MPC monetary policy decisions. Read up on Forex Gump’s trading guide to prepare for the SNB and BOE events!

See more:

U.S. Session Forex Recap

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