Asian Session Forex Recap – Apr. 18, 2016

  • U.K. Rightmove house price index steady at 1.3%
  • Australia’s new motor vehicle sales up by 2.2% vs. 0.0% previous

Risk aversion was the name of the game during the Asian session, as traders priced in a no-deal meeting between the world’s oil producers in Doha.

Major Events:

Doha oil meeting a dud – The biggest story of the hour is the lack of results from last weekend’s meeting. If you recall, oil traders had been hoping that the meeting between the world’s largest oil producers would yield at least a plan to stabilize falling oil prices.

Unfortunately, the meeting failed to produce results with big players like the U.S. and Iran not even showing up, Russia on the fence about putting a production cap and Saudi Arabia showing its willingness to fight a price war. Duhn duhn duhn..

Overall risk aversion – The non-event that was the oil meeting produced a domino effect across the markets. Energy stocks dropped and dragged the main bourses with Nikkei feeling the extra pressure from the resulting yen strength and earthquake concerns.

Australia’s ASX is down by 0.40%, the Shanghai composite is down by 0.59%, Hang Seng is down by 1.21%, and Nikkei is down by a whopping 3.40%.

Major Currency Movers:

USD and JPY – Low-yielding currencies like the dollar, yen, and the franc took advantage of the overall risk aversion vibe.

The Greenback is up against the euro and the pound while USD/JPY is down by 18 pips (-0.17%) on top of its downside weekend gap. GBP/JPY and EUR/JPY also showed weekend gaps with the former losing 56 pips (-0.36%) and the latter clocking in an additional 42-pip loss (-0.34%) on top of the weekend gap.

Comdolls – With oil at the center of today’s headlines, it’s not surprising that commodity-related currencies are taking a hit.

AUD/USD, USD/CAD, and NZD/USD all gapped lower while AUD/JPY lost 43 pips (-0.51%) and CAD/JPY fell by 101 pips (-0.13%).

Watch Out For:

  • 10:00 am GMT: German Bundesbank report

See more:

U.S. Session Forex Recap

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