Asian Session Forex Recap – June 3, 2016

  • Australia’s AIG services index up from 49.7 to 51.5 in May
  • Japan’s average cash earnings rises by 0.3% vs. 0.9% uptick expected, 1.5% previous
  • New Zealand’s ANZ commodity prices up by 1.0% vs. -0.8% previous
  • China’s Caixin services PMI down from 51.8 to 51.2 in May

Forex price action was a mixed bag of nuts, as Asian session traders priced in economic reports and cautiousness ahead of today’s top-tier events.

Major Events:

Positive reports from Australia and New Zealand – Mid-tier data from both Australia and New Zealand came in better-than-expected, which helped boost the Aussie and the Kiwi higher across the board.

Australia’s service sector swung back to expansion, clocking in a 51.5 index reading in May against April’s 49.7 contractionary figure. A closer look tells us that sales, new orders, and stocks all remained in expansion territory while deliveries and employment were in contraction.

Meanwhile, New Zealand’s commodity prices rose by 1.1% after dropping by 0.8% in April. Horticulture led the gains, as the start to the new season for kiwifruit and pipfruit pushed prices higher. Do you think a “pipfruit” would help you make pips?

U.S. oil data offset the OPEC disappointment – Oil prices held steady during the Asian session, thanks to a report from the U.S. Department of Energy showing that commercial crude oil inventories had fallen by 1.4 million barrels last week.

The slight drop was enough to offset some of the disappointment from the latest OPEC meeting. Brent crude is up by 0.02% to $50.05 while U.S. crude oil is up by 0.06% to $49.20.

All eyes on the NFP report – The dollar slid against the other major currencies as traders squared their positions ahead of today’s much-anticipated report. According to Forex Gump, chances are skewed towards a weak reading though we can’t discount the possibility of upside surprises. Check out his trading guide if you’re planning on taking trades today!

Major Market Movers:

USD – The Greenback lost a couple of pips across the board ahead of the NFP report. EUR/USD inched 4 pips higher to 1.1158, USD/JPY fell by 19 pips (-0.18%), and USD/CHF slipped to the .9900 psychological handle.

Comdolls – The dollar’s weakness, positive reports from Australia and New Zealand, and steady oil prices all contributed to a strong session for the Aussie, Loonie, and Kiwi.

AUD/USD popped up by 10 pips (+0.14%), USD/CAD dropped by 9 pips (-0.07%), and NZD/USD rose by 27 pips (+0.40%).

Watch Out For:

  • 7:15 am GMT: Spanish services PMI (55.6 expected vs. 55.1 previous)
  • 7:45 am GMT: Italian services PMI (52.3 expected vs. 52.1 previous)
  • 7:50 am GMT: French services PMI expected to remain at 51.8
  • 7:55 am GMT: German final services PMI expected to remain at 55.2
  • 8:00 am GMT: Euro Zone final services PMI expected to remain at 53.1
  • 8:30 am GMT: U.K. services PMI (52.5 expected vs. 52.3 previous)
  • 9:00 am GMT: Euro Zone retail sales (0.4% expected vs. -0.5% previous)

See more:

U.S. Session Forex Recap

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