Asian Session Forex Recap – Apr. 21, 2016

  • Australia’s NAB quarterly business confidence down from 5 to 4 in Q1 2016
  • New Zealand’s credit card spending down from 7.3% to 4.8%
  • New Zealand’s ANZ job ads up by 2.9% vs. 1.2% previous

A pretty mixed trading session for the major currencies, as a lack of forex catalysts turned investor attention to commodities and equities flows.

Major Events:

Australia and New Zealand’s reports – Trading neighbors Australia and New Zealand inspired a bit of bullishness from traders. Australia’s quarterly business confidence might have slipped, but it was still in the positive territory overall. Meanwhile, New Zealand’s better-than-expected credit card activity and job ads data helped prop up the Kiwi.

More oil price gains – The party isn’t over for the oil bulls! Thanks to a report by the Energy Information Association (EIA) yesterday, oil prices continued their upward momentum. Heck, they even ignored a speech by the EIA head honcho saying that it might take until 2017 to rebalance the oil markets!

Brent crude is near its five-month highs with a 0.44% gain to $46.00 while U.S. oil is also up by 0.41%r to $44.37.

Mixed Asian equities – China’s equities continued to slide despite a lack of catalysts while the Nikkei benefitted from overall yen weakness, talks of a possible delay in sales tax increase, and a bit of jawboning from Japanese officials. The other Asian bourses also took advantage of positive earnings report earlier in the day as well as the overall increase in commodity prices.

Major Currency Movers:

JPY – The yen might not have gained back its recent losses but it also didn’t move far against its counterparts during the Asian session.

USD/JPY was steady around the 109.75 area while EUR/JPY lollygagged just below the 124.00 mark. Even GBP/JPY stayed at its weekly highs near 157.50.

Comdolls – The Aussie and the Loonie had mixed reactions against their counterparts while the Kiwi found support from better-than-expected data in New Zealand.

AUD/USD is up by 15 pips (+0.19%) while USD/CAD lost 8 pips (-0.06%). Meanwhile, NZD/USD recovered from its .6956 intraday low to trade at .6973.

Watch Out For:

  • 6:00 am GMT: Switzerland trade balance (3.89B CHF expected vs. 4.07B CHF previous)
  • 8:30 am GMT: U.K. retail sales (-0.1% expected vs. -0.4% previous)
  • 8:30 am GMT: U.K. public sector net borrowing (5.6B GBP expected vs. 6.5B GBP previous)
  • 11:45 am GMT: The ECB will print its monetary policy decision. Read Forex Gump’s trading preview if you’re planning on trading it!
  • 12:30 pm GMT: Draghi will conduct a press conference. Keep an eye out for any hints of future decisions and biases!

See more:

U.S. Session Forex Recap

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