Asian Session Forex Recap – Feb. 11, 2016

  • Australia’s MI inflation expectations maintains 3.6% growth in January
  • Japan’s markets out on National Foundation Day
  • Chinese markets still out for Lunar New Year holidays

I’m seeing double! Thanks to another thin trading day for the Asian markets, forex traders mostly mirrored yesterday’s price action.

Major Events:

Oil returns to its downtrend – The Black Crack failed to sustain its gains after Asian session traders got a second look at yesterday’s oil inventory report. If you recall, the U.S. Energy Information Administration’s (EIA) latest report reflects lower inventory levels. As it turned out, oil traders are still not satisfied that storage levels remain at almost record highs. Brent crude is down by 0.58% to $30.66 while U.S. oil is down by 1.69% to $26.98. Yipes!

Overall risk aversion – With China and Japan’s markets out today, Asian session forex traders had time to analyze (and be bearish about) the recent economic events. Aside from worrying about oil prices and its impact on those who are exposed to the commodity, they’re also back to worrying about China’s growth prospects and the Fed’s decreasing chances of a rate hike. It also didn’t help that Hong Kong’s markets are back today and celebrated its return with a 4.37% decline.

Major Currency Movers:

USD – Yellen was non-committal about the Fed’s plans yesterday and dollar traders didn’t like it one bit. The Greenback lost a few pips against its counterparts before a bit of risk aversion hit the markets.

USD/JPY dropped by another 100 pips (+0.88%) while EUR/USD inched 13 pips higher (+0.12%) and GBP/USD slipped by 5 pips (-0.03%).

JPY – The low-yielding yen dominated the session once again, mostly thanks to another bout of oil price declines and overall risk aversion.

EUR/JPY fell by 100 pips (-0.78%), GBP/JPY dropped by 141 pips (-0.85%), and AUD/JPY slipped by another 96 pips (-1.19%).

Comdolls – The high-yielding comdolls started the day on the right side of the charts, but soon gave up pips to overall risk aversion and a reversal in oil prices.

AUD/USD popped up to .7153 before settling down to .7090 while USD/CAD saw a session low of 1.3883 before climbing back to 1.3945. Even NZD/USD rocketed to .6735 before going back to .6674.

Watch Out For:

  • 8:15 am GMT: Switzerland’s CPI (-0.3% expected vs. -0.4% previous)
  • BOE officials Cunliffe and Bailey to give speeches today

See more:

U.S. Session Forex Recap

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