Asian Session Forex Recap – Apr. 14, 2016

  • Australia’s MI inflation expectations up by 3.6% vs. 2.4% previous
  • Australia’s unemployment rate down from 5.8% to 5.7% vs. 5.9% expected
  • Australia’s employment up by 26.1K vs. 18.6K expected, -0.7K previous

The dollar dominated its counterparts again during the Asian session thanks to a mix of economic news and reports. Here’s what you need to know.

Major Events:

Australia’s jobs data – Unemployment in the Land Down Under fell from 5.8% to 5.7% in March, its lowest reading since September 2013 and lower than the expected jump to 5.9%.

Details reveal that net employment rose by 26,100 with part-time employment rising by 34,900 as 8,800 full-time employees lost their jobs. Participation rate, or the number of workers looking for jobs compared to the size of the work force, remained steady at 64.9%.

While the report isn’t all rainbows and unicorns for the bulls, it’s also enough to ward off Aussie bears who were betting on another rate cut from the RBA in the next few months.

Easing from other central banks – The Monetary Authority of Singapore (MAS) surprised the markets when it announced that it won’t tolerate any appreciation of the Singapore dollar against the Greenback.

The central bank, which often uses the Singapore dollar nominal effective exchange rate (S$NEER) as a policy tool, said that the decision only shifts its “modest and gradual” exchange rate approach to “neutral” and should not be taken as a policy to depreciate its currency.

The People’s Bank of China (PBoC) also made headlines when it set the yuan at 6.4891 per dollar, 0.46$ weaker than yesterday’s 6.4591 and marks the biggest decline since January 7. The decision is an ominous sign ahead of tomorrow’s Chinese GDP release and ended up spooking some risk-friendly traders.

Major Currency Movers:

USD – The dollar extended its gains from the U.S. session and a bit of risk aversion in the Asian session.

EUR/USD slipped by another 19 pips (-0.17%), GBP/USD slid by 70 pips (-0.49%), and USD/JPY inched another 18 pips higher (+0.17%).

AUD – The Aussie didn’t gain much from Australia’s better-than-expected report and even dipped a bit against its counterparts. One possible explanation is that it got hit by concerns over China’s growth.

AUD/USD fell to a low of .7620 before settling back to .7653 while AUD/JPY fell to 83.42 before closing at 83.76.

NZD – There were no major data from New Zealand today aside from a confirmation from the RBNZ that there was indeed a leak on its last monetary policy announcement. Traders pointed to a huge move in AUD/NZD as the cause for the overall Kiwi weakness.

In any case, NZD/USD ended up falling by 75 pips (-1.08%) while NZD/JPY also lost 83 pips (-1.10%) and AUD/NZD rocketed by 122 pips (+1.10%).

Watch Out For:

  • 7:15 am GMT: Switzerland PPI (-0.2% expected vs. -0.6% previous)
  • 9:00 am GMT: Euro Zone final CPI expected to stay at -0.1%
  • 9:00 am GMT: Euro one final core CPI expected to remain at 1.0%
  • 11:00 am GMT: BOE monetary policy decision. Are Mark Carney and his gang considering more rate hikes down the road?

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!