Asian Session Forex Recap – Feb. 29, 2016

  • Japan’s retail sales down by 0.1% vs. 0.2% expected, 1.1% decline in December
  • Japan industrial production up by 3.7% vs. 3.2% uptick expected, 1.7% decline last month
  • AU MI inflation gauge down by 0.2% vs. 0.4% rise last month
  • AU quarterly company operating profits down by 2.8% in Q4 2015 vs. 1.7% decline expected
  • AU private sector credit maintains 0.5% growth in February
  • Japan’s housing starts up by 0.2% vs. 0.2% decline expected, 1.3% downtick last month

Whether it’s the lack of market-moving reports or forex players watching Leo win his first Oscar (Congrats, bud!) instead of trading, volatility was a dud during the Asian session. Here are the deets!

Major Events:

Weak Australian and Japanese reports – Australian and Japanese equities started the week on shaky footing, as Australia’s inflation and company profits reports missed expectations while Japan’s retail sales also disappointed.

The Land Down Under’s inflation gauge slipped by 0.2% after rising by 0.4% while company profits in Q4 2015 showed a 2.8% decline, which is deeper than the 1.7% slip expected. Meanwhile, Japan’s retail sales inched 0.1% lower against January last year after already falling by 1.1% in December.

Profit-taking ahead of this week’s major events – With forex traders factoring in the G20 meeting over the weekend, end-of-month flows, and the tier 1 reports coming up in the next couple of days (including China’s PMIs, RBA’s statement, and the big NFP report), it’s easy to see why volatility is limited to a bit of profit-taking. Will the action return in the next couple of trading sessions though? Gotta stay glued to the tube so we don’t miss it!

Major Currency Movers:

JPY – The yen crosses slid lower across the board, thanks mostly to overall risk aversion in the markets.

USD/JPY dropped by 80 pips (-0.70%), EUR/JPY fell by 78 pips (-0.63%), GBP/JPY slid by 113 pips (-0.72%), and AUD/JPY saw a 52-pip decline (-0.64%).

Watch Out For:

  • 7:00 am GMT: German retail sales (0.3% expected vs. -0.2% previous)
  • 7:00 am GMT: German import prices (-0.9% expected, -1.2% previous)
  • 8:00 am GMT: KOF economic barometer (99.1 expected vs. 100.3 previous)
  • 9:30 am GMT: UK net individual lending (5.2B GBP expected vs. 4.4B GBP previous)
  • 9:30 am GMT: UK mortgage approvals (74K expected vs. 71K previous)
  • 10:00 am GMT: Euro Zone CPI flash estimate (0.0% expected vs. 0.3% previous), core CPI (0.9% expected vs. 1.0% previous)

See more:

U.S. Session Forex Recap

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