Asian Session Forex Recap – Mar. 14, 2016

  • Japan’s core machinery orders up by 15.0% vs. 2.0% expected, 4.2% in December

Forex trading was as tight as Cyclopip’s pants during the Asian session, thanks to a lack of catalysts and traders gearing up for a potentially volatile week ahead.

Major Events:

U.S. equities rally hangover – Asian equities had more game than the major currencies, as they tracked the performance of U.S. equities from last Friday. If you recall, oil prices popped up on diminishing chances of an output freeze and the U.S. equities hit their 2016 highs last Friday.

This time around a weaker yen, higher commodities prices, and traders shrugging off China’s data releases all contributed to equities rallies in the Asian region. Nikkei took a break with a 1.71% gain while Shanghai is up by 2.58%, Hang Seng is up by 1.32%, and ASX is up by 0.28%. Too bad we can’t see much of this optimism on the forex arena though.

Calm before the storm? – The major currency pairs barely moved during the Asian session, likely due to a lack of major reports released and traders gearing up for a potentially volatile week ahead. Heck, we have FOUR central bank events coming up, along with the U.S. and Canadian CPI and retail sales reports and employment numbers from the U.K. and Australia. Better mark these events on your forex calendars!

Major Currency Movers:

AUD and NZD – Commodity-related currencies like the Aussie and Kiwi got a few kicks in during the Asian session after China’s data dump didn’t turn out as bad as many had expected.

AUD/USD popped up by 43 pips (+0.57%) and AUD/JPY zoomed up by 33 pips (0.38%) while NZD/USD also inched 26 pips higher (+0.39%) and NZD/JPY rose by 15 pips (+0.20%).

EUR – The common currency snuck in a couple of pips against its major counterparts on a bit of risk appetite and possibly more euro traders jumping in after the ECB’s policy decision.

EUR/USD is up by 31 pips (+0.28%), EUR/JPY is up by 12 pips (+0.10%), and EUR/GBP is up by 16 pips (+0.21%) along with EUR/CHF (+0.15%).

Watch Out For:

  • 10:00 am GMT: Euro Zone industrial production (1.7% expected vs. -1.0% previous)

See more:

U.S. Session Forex Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!