Asian Session Forex Recap – Apr. 15, 2016

  • China’s GDP (q/y) up by 6.7% as expected vs. 6.8% previous
  • China’s industrial production (y/y) up by 6.8% vs. 5.9% uptick expected, 5.4% previous
  • China’s new loans up from 727B CNY to 1,370B CNY vs. 1,050B CNY expected
  • China’s fixed asset investment (ytd/y) up from up from 10.2% to 10.7% vs. 10.4% expected
  • China’s retail sales (y/y) up from 10.2% to 10.5% vs. 10.4% expected
  • RBA: bank resilience has increased significantly
  • Japan’s final industrial production up from -6.2% to -5.2% in February
  • Japan’s capacity utilization down by 5.4% vs. 2.6% uptick in January

Forex trading was a mixed bag of nuts, as the Greenback gained on its European and lower-yielding counterparts but lost to the comdolls. What’s up with that?!

Major Events:

RBA’s financial stability review – A semi-annual report from the Reserve Bank of Australia (RBA) revealed mixed concerns. The central bank recognized that the banks’ resilience has increased, but warned against exposure to China and New Zealand’s dairy industry. Overall not a bad picture for Australia, which likely helped the Aussie climb higher during the session.

Data dump from China – The biggest story of the session was the world’s second largest economy printing its GDP, industrial production, retail sales, fixed asset investment, and new yuan loans today.

China’s GDP came in at an expected seven-year low of 6.7% while the rest of the data beat their estimates. Overall the monthly reports support speculations that the economy has recovered from a rocky start in January.

Whether traders are sceptical of the releases or are simply digesting the numbers though, the impact of the data dump is muted in the forex scene. Guess we’ll have to see if the reports make more waves in the next trading sessions!

All eyes on the weekend oil meeting – Another reason for today’s subdued volatility is the oil producers’ meeting happening over the weekend in Doha, Qatar. As Forex Gump mentioned, the OPEC, along with other major oil players, will talk about the possibility of freezing their oil outputs to help with the global oil oversupply situation.

Expectations are high that the leaders will come up with something and market players are holding their breaths. After all, oil price concerns have dictated risk sentiment on more than one occasion last year. Watch out for related headlines and potential bursts in volatility ahead of the meeting!

Major Currency Movers:

JPY – The overall risk aversion brought more pips to the low-yielding yen. USD/JPY climbed by 23 pips (+0.21%), EUR/JPY jumped by 33 pips (+0.27%) and GBP/JPY rose by 33 pips (+0.21%).

AUD – The Aussie had a busy day dealing with the RBA’s semi-annual review and China’s data dump.

AUD/USD slid to a session low of .7681 before closing at .7712 while AUD/JPY popped up by 38 pips (+0.45%). AUD/NZD saw a bit of selling though, and dropped by 31 pips (-0.28%) throughout the session.

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%

See more:

U.S. Session Forex Recap

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