Asian Session Forex Recap – Apr. 19, 2016

  • Australia’s CB leading index down by 0.3% vs. 0.4% decline in January
  • RBA minutes hint at no hurry to cut rates further

Risk appetite dominated the Asian session, as forex traders priced in a recovery in equities and oil prices. Here’s what happened in the last few hours!

Major Events:

RBA meeting minutes – In case you missed the skinny on the latest RBA decision, then the meeting minutes should clear things up for you.

In the release, the central bank recognized that the labor market is “noticeably stronger than a year ago.” The RBA emphasized that it’s closely watching Australia’s employment trends to see its longer-term impact on inflation. If you recall, the RBA said that the continued low inflation provides scope for further easing.

Another notable remark is that Stevens and his gang now believe that the high Aussie “could complicate” the progress of non-mining sectors in Australia. Overall market players are speculating that Glenn Stevens and his gang aren’t likely to cut rates further unless they see other urgent concerns for the economy.

More risk-taking – Like in the U.S. session, Asian session risk-takers took advantage of a labor strike in Kuwait, which pushed oil prices higher. The recovery in oil prices also pushed the Asian equities in the green and boosted the high-yielding currencies along with it. Brent crude is up by 0.78% to $41.51 while U.S. oil is up by 0.91% to $43.30.

Major Currency Movers:

USD and JPY – The risk-friendly trading environment translated into a weak trading session for low-yielders like the dollar and the yen.

EUR/USD popped up by 16 pips (+0.14%), GBP/USD rose by 34 pips (+0.24%), and USD/CHF slipped by 14 pips (-0.15%).

EUR/JPY also zoomed 49 pips higher (+0.40%), GBP/JPY crept up by 77 pips (+0.50%), and USD/JPY rose by 28 pips (+0.26%).

CAD –Not surprisingly, the oil-related Loonie caught a few pips against its major counterparts. USD/CAD is down by 25 pips (-0.20%), CAD/JPY is up by 38 pips (+0.45%), and AUD/CAD is up by 18 pips (+0.18%).

AUD and NZD – The Aussie and Kiwi got some of the comdoll action especially after the higher oil prices lifted the equities markets and boosted risk-taking in the forex scene.

AUD/USD is up by 30 pips (+0.39%), NZD/USD is up by 53 pips while AUD/JPY is up by 54 pips (+0.64%) and NZD/JPY is up by 78 pips (+1.03%).

Watch Out For:

  • 8:00 am GMT: Euro Zone current account
  • 9:00 am GMT: German ZEW economic sentiment
  • 9:00 am GMT: Euro Zone ZEW economic sentiment

See more:

U.S. Session Forex Recap

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