Asian Session Forex Recap – July 20, 2016

  • Australia’s MI leading index down by 0.2% vs. 0.2% growth in May

With barely any economic reports on the docket, forex traders turned to the Asian bourses for risk sentiment. Here are the major market movers of the session!

Major Events:

Australia’s MI leading index – The only economic report printed during the session showed a 0.2% decline for June, lower than the 0.2% uptick we saw in May. The data is generally consistent with the Westpac release, which is probably why the report barely dented the Aussie’s price action.

Slight recovery in oil prices
– Oil prices saw small gains following its slide from earlier this week. Brent crude oil is up by 0.24% while U.S. oil is up by 0.30%. Focus will now turn to Uncle Sam’s crude oil inventories due in the U.S. session. Keep close tabs on your oil-related positions!

Mixed risk sentiment – Thanks to a light economic calendar, forex traders turned to the Asian equities for direction. The Nikkei saw its first red day this week on a bit of profit-taking while the other Asian equities markets’ gains were limited by leftover risk aversion from the IMF’s latest growth estimate downgrades.

The Nikkei is down by 0.25%, Hang Seng is up by 0.29%, the Shanghai index is down by 0.35%, and Australia’s ASX is up by 0.69%.

Market Movers:

JPY – The low-yielding yen snuck in a couple of pips but soon turned around on a bit of risk appetite in the middle of the Asian trading session.

EUR/JPY fell to 116.54 before trading at 116.80 while USD/JPY slipped to 105.86 before popping back up to106.03. Ditto for GBP/USD, which dropped to 138.36 before recovering to 139.01.

AUD – The Aussie took small hits from Australia’s slightly weaker-than-expected leading indicators release.

AUD/USD fell from a session high of .7518 to .7502, AUD/NZD dropped from 1.0678 to 1.0629, and EUR/AUD popped up from 1.4655 to 1.4685.

Watch out for:

  • 7:00 am GMT: German PPI: (0.2% expected vs. 0.4% previous)
  • 9:00 am GMT: Euro Zone current account (24.9B EUR expected vs. 36.2B EUR previous)
  • 9:30 am GMT: U.K.’s employment reports (claimant count change, unemployment rate, average earnings). Read Forex Gump’s trading guide if you’re planning on trading the releases!
  • 10:00 am GMT: Switzerland’s ZEW economic expectations

See also:

U.S. Session Recap

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