Asian Session Forex Recap – May 4, 2016

  • Japanese markets closed for Greenery Day holiday
  • Australia’s new vehicle sales up by 7.2% (y/y) in April
  • Australia’s AIG performance of services index up from 49.5 to 49.7
  • U.K. BRC shop price index down by 0.3% (1.7% y/y)
  • New Zealand’s ANZ commodity prices down by 0.8% vs. 1.3% decline expected

With our Japanese friends still out on a holiday, Asian session forex traders mainly extended the moves from the U.S. session.

Major Events:

Overall risk aversion – With Japan’s markets still out on a holiday, Asian session forex traders mainly extended the moves from the U.S. session. Tumbling oil prices from yesterday as well as fresh global growth concerns dragged on the higher-yielding currencies and pushed the Greenback higher.

Australia’s ASX lost its post-RBA rate cut glow and is now down by 1.55% while the Shanghai index is down by 0.06% and Hang Seng is down by 0.68%.

New Zealand’s job release – As I mentioned in my U.S. session recap, New Zealand’s latest jobs data printed mixed results for forex traders. See, the headline increase of 1.2% for Q1 2016 and the uptick in the labor cost index was offset by the climb in the unemployment rate from 5.4% to 5.7%. The Kiwi ended up slipping across the board after a brief spike higher when the report was released.

Major Currency Movers:

USD – Thanks to overall risk aversion, the low-yielding Greenback continued to post gains against its major counterparts. EUR/USD slipped by 19 pips (-0.17%), GBP/USD inched 6 pips lower (-0.04%), and USD/CHF popped up by 72 pips (-0.68%).

JPY – The yen bulls tried to flex their muscles after the currency spiked lower at the start of the session. The bears won the little tug-o-pips though, and eventually dragged the low-yielding yen lower across the board. Of course, it might have helped that the market bees had buzzed about a possible intervention from the BOJ.

USD/JPY is up by 72 pips (+0.72%), EUR/JPY is up by 62 pips (+0.51%), and GBP/JPY is up by 109 pips (+0.70%).

NZD – The Kiwi initially rallied at the release of New Zealand’s jobs data, but soon lost its footing as the session wore on.

NZD/USD is down by 29 pips (-0.42%), GBP/NZD is up by 100 pips (+0.48%), and AUD/NZD is up by 61 pips (+0.56%).

Watch Out For:

  • 6:45 am GMT: French trade balance (-4.2B EUR expected vs. -5.2B EUR previous)
  • 7:50 am GMT: French final services PMI expected to remain at 50.8
  • 7:55 am GMT: German final services PMI expected to drop from 54.6 to 50.5
  • 8:00 am GMT: Euro Zone final services PMI (53.3 expected vs. 53.2 previous)
  • 8:30 am GMT: U.K. construction PMI (54.1 expected vs. 54.2 previous)
  • 9:00 am GMT: Euro Zone retail sales (0.1% expected vs. 0.2% previous)

See more:

U.S. Session Forex Recap

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