Asian Session Forex Recap – Dec. 11, 2015

  • NZ business manufacturing index: 54.7 vs. 53.2 previous
  • NZ food price index: -0.2% vs. -1.2% 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:

Nikkei rally and JPY weakness – The yen took center stage during the Asian session, as a rally in Nikkei boosted risk appetite and limited demand for the low-yielding yen. Some of the possible reasons for the rally include profit-taking from the previous days’ selling and Japanese exporters getting confident over the yen’s recent weakness.

Fed rate hike expectations – Now that most of the major central banks have cast their votes in, all eyes are turning back to the Fed. Unless you’ve been living under a rock, you should know that Janet Yellen and her gang are widely expected to raise its interest rates for the first time in years. The Greenback raked in pips across the board while the inversely-correlated gold extended its weekly losses.

Major Currency Movers:

USD – The Greenback rose across the board as more traders are back to piling up their Fed rate hike bets. EUR/USD remained subdued below 1.0950 while GBP/USD slipped by another 15 pips (-0.10%).

JPY – A bit of risk-taking in the Japanese equities market kept a lid on the yen’s gains. USD/JPY was most obvious with its 44-pip climb (+0.36%) followed by EUR/JPY (+0.33%) and GBP/JPY (+0.25%).

Comdolls – No luck for the comdoll bulls, as commodities like gold and oil are still sliding down their charts. AUD/USD lost another 42 pips (-0.58%), USD/CAD popped up by 31 pips (+0.23%), and NZD/USD traded tightly around the .6750 area.

Watch Out For:

  • 7:00 am GMT: German final CPI (expected to remain at 0.1%)
  • 7:00 am GMT: German wholesale price index (expected to grow by 0.2% vs. -0.4% previous)
  • 7:45 am GMT: French current account numbers
  • 9:00 am GMT: Italian industrial production (0.3% expected vs. 0.2% previous)
  • 9:30 am GMT: U.K. construction output (1.0% expected vs. -0.2% previous)

See more:

U.S. Session Forex Recap

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