Asian Session Forex Recap – Apr. 12, 2016

  • Japan’s bank lending up by 2.0% in March vs. 2.2% growth in February
  • Australia NAB business confidence up from 3 to 6 in March
  • Australia NAB business conditions up from 8 to 12 in March

A pretty mixed session for forex traders, positive reports fuelled risk appetite while China’s equities got weighed down ahead of key releases.

Major Events:

Australia’s business confidence reports –Reports by the National Australia Bank (NAB) revealed a more optimistic business sector. Business confidence doubled from 3 to its index reading of 6 while business confidence shot up from 8 to 12 in the same month.

The report hinted that non-mining sectors in the economy are gaining ground and that business outlook has improved despite global uncertainties. Will this mean a longer period of no rate cut from the RBA?

Mixed equities markets – A weaker yen and another warning from Finance Minister Taro Aso cheered Japanese equities traders into putting Nikkei in the green while uncertainty ahead of China’s major releases this week weighed on Shanghai’s index.

Let’s see if the London session traders inspire one-directional movement. Over the next couple of hours focus will turn to the pound as the U.K. prints its inflation reports. Read Forex Gump’s trading guide and see if you can spot any trade opportunities!

Major Currency Movers:

JPY – The yen lost across the board on a bit of profit-taking and risk appetite in the markets.

USD/JPY popped up by 34 pips (+0.32%), EUR/JPY rose by 43 pips (+0.35%), and GBP/JPY shot up by 58 pips (+0.38%).

AUD – The high-yielding Aussie got a couple of punches in today thanks to higher gold prices and better-than-expected business confidence reports from Australia.

AUD/USD is up by 40 pips (+0.53%) while AUD/JPY gained a nice 70 pips (+0.85%).

Watch Out For:

  • 6:00 am GMT: German final CPI expected to remain at 0.8%
  • 6:00 am GMT: German wholesale price index (WPI) expected to print at 0.3% vs. -0.5%
  • 6:00 am GMT: Japan’s preliminary machine tool orders (y/y) (-22.5% previous)
  • 8:30 am GMT: U.K.’s inflation reports. Check out Forex Gump’s trading guide for possible trade opportunities!

See more:

U.S. Session Forex Recap

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