Asian Session Forex Recap – June 10, 2016

  • China’s markets closed for the Dragon Boat Festival
  • Japan’s PPI (y/y) remains at -4.2% in May as expected
  • Japan’s tertiary industry activity up by 1.4% vs. 0.7% uptick expected, 0.5% decline previous

Back-to-back, baby! Thanks to a lack of major economic reports, Asian session forex traders mostly extended the themes from the previous session. Here’s what happened to your favorite currencies!

Major Events:

Overall risk aversion – I’m seeing red! With China’s markets out on a bank holiday and the rest of the major Asian bourses not seeing major economic releases, price action simply extended its bearish tone from the U.S. session.

Commodities continued their slide as oil and copper prices slid in the global markets. If you recall, the Black Crack had hit new 2016 highs earlier this week on the back of falling oil inventories in the U.S. Meanwhile, concerns for global economic growth are back in vogue and market players are paying attention.

Nikkei is down by 0.40%, Australia’s ASX is down by 0.92%, and Hang Seng is down by 0.64%.

End-of-week profit-taking? – The risk aversion vibe pushed low-yielding currencies higher, which only convinced more forex traders to take off their high-yielding bets ahead of next week’s big events. See, the Fed and the BOJ are scheduled to publish their monetary policy decisions next week. Not only that, but next week is the last full trading week before the U.K. referendum on the 23rd. Talk about the plot thickening!

Major Market Movers:

USD and JPY – It was a good session to be bullish on low-yielding currencies, as the overall risk aversion pushed traders out of the higher-yielding bets.

EUR/USD slipped by 27 pips (-0.24%) and GBP/USD inched by another 37 pips (-0.26%). Meanwhile, GBP/JPY fell by 44 pips (-0.28%), and EUR/JPY dropped by 31 pips (-0.26%).

AUD – The Aussie continued to feel the squeeze after yesterday’s RBNZ decision caused a serious downside breakout on AUD/NZD. In fact, the move was so strong that the currency also lost pips against its other counterparts.

AUD/USD dropped by 29 pips (-0.39%), AUD/JPY fell by 32 pips (-0.40%), and AUD/NZD stayed near its 2016 lows.

Watch Out For:

  • 7:00 am GMT: Germany’s final CPI to remain unchanged at 0.3%
  • 7:00 am GMT: Germany’s wholesale price index expected to slip from 0.3% to 0.2%
  • 7:45 am GMT: French industrial production (0.5% expected vs. -0.3% previous)
  • 8:00 am GMT: German Bundesbank President Weidmann to give a speech about monetary, fiscal, and fiscal stability in Germany. Watch out for comments regarding Brexit or the ECB’s policies!
  • 9:00 am GMT: Italian industrial production (0.3% expected vs. 0.0% previous)
  • 9:30 am GMT: U.K. construction output expected to rise by 1.5% vs. 3.6% decline last month
  • 9:30 am GMT: U.K. consumer inflation expectations (1.8% previous)

See more:

U.S. Session Forex Recap

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