Asian Session Forex Recap – May 5, 2016

  • Japanese markets out on Children’s Day holiday
  • Australia’s HIA new home sales up by 8.9% vs. 5.3% decline in February
  • Australia’s retail sales up by 0.4% vs. 0.3% expected, 0.1% previous
  • Australia’s trade deficit down to 2.16B AUD vs. 2.95B AUD expected, 3.04B AUD previous
  • China’s Caixin services PMI down from 52.2 to 51.8 in April

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

Major Events:

Australia’s news releases – According to the HIA, new home sales in Australia popped up by 8.9% in March, its biggest gain in six years, after declining by 5.3% in February. The trend is consistent with the uptick in building approvals and is a nice bounce from the downward trend of the report.

The retail sales report also provided a nice boost with its 0.4% growth in March (analysts had only been expecting a 0.3% uptick) and an upward revision to February’s numbers. Meanwhile, Australia’s trade deficit narrowed down in March and the improvements are seen across the board. Not surprisingly, the Aussie gained pips against its major counterparts.

China’s Caixin services PMI – China’s Caixin services PMI came in at 51.8 in April, still showing expansion but is lower than March’s 52.2 figure. The weakness also lines up with the official figures released over the weekend. The manufacturing PMIs are more closely watched, however, since the sector has been showing contractions in the past few months.

Oil price increase – The fires in Canada’s major oil-producing areas pushed the Black Crack’s prices higher today. Brent crude oil is up by 1.41% to $45.25 while U.S. crude oil is up by 1.92% to $44.62.

Major Currency Movers:

AUD and NZD – The Aussie and the Kiwi both took advantage of Australia’s better-than-expected reports and upticks in commodity prices.

AUD/USD is up by 37 pips (+0.50%) and NZD/USD is up by 19 pips (+0.28%) while AUD/JPY is up by 58 pips (+0.72%) and NZD/JPY is up by 35 pips (+0.48%).

CAD – The Loonie found some support from the increase in oil prices. USD/CAD is down by 36 pips (-0.28%) and CAD/JPY is up by 41 pips (+0.49%).

Watch Out For:

  • Switzerland, Germany and France on Ascension Day holiday
  • 7:30 am GMT: U.K. Halifax house price index (0.1% expected vs. 2.6% previous)
  • 7:55 am GMT: German final services PMI expected to drop from 54.6 to 50.5
  • 8:00 am GMT: ECB economic bulletin
  • 8:10 am GMT: Euro Zone retail PMI
  • 8:30 am GMT: U.K. services PMI (53.6 expected vs. 53.7 previous)

See more:

U.S. Session Forex Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!