Asian Session Forex Recap – August 10, 2016

  • Japan core machinery orders up by 8.3% in June vs. 1.4% downtick in May
  • Japan’s PPI (y/y) down by 3.9% vs. 4.2 drop in June
  • AU Westpac consumer sentiment up by 2.0% vs. 3.0% decline in July
  • AU home loans up 1.2% vs. 2.4% expected, -0.8% previous
  • Japan’s tertiary industry activity up by 0.8% vs. 0.3% expected, -1.2% previous

The Greenback continued to lose pips against its major counterparts, as a lack of catalysts convinced forex traders to extend yesterday’s economic themes.

Major Events:

Data from Australia and Japan – The only reports of note during the session came from Australia and Japan. Consumer sentiment in the Land Down Under showed broad-based improvement in August after showing declines in July.

Meanwhile, a home loans report showed acceleration (both in dollar terms and in number of loans issued) in June. And that’s BEFORE the RBA even cut its rates! This bodes well for the housing market, as the report hints that investors are coming back to the market and banks are willing to lend more to the sector again.

Japan is not without its good news. Core machinery orders jumped by 8.3% in June, the first increase in three months. The report, which is taken as a leading indicator for future capital spending, signals that Japanese companies are growing confident enough to increase their capital expenditure.

Major Market Movers:

USD – The dollar gave up more pips at the start of the session, as Asian session traders took their cues from the U.S. session.

EUR/USD is up by another 36 pips (+0.32%) to 1.1150, GBP/USD is up by 63 pips (+0.48%), and USD/CHF is down by 21 pips (-0.21%) to .9796.

JPY – The yen pocketed more pips throughout the session after yesterday’s USD/JPY weakness fuelled today’s risk aversion, which then dragged the yen crosses lower. Gotta love the forex scene!

USD/JPY is down by 55 pips (-0.54%) to 101.38, EUR/JPY is down by 24 pips (-0.21%) to 113.02, and AUD/JPY is down by 21 pips (-0.27%) to 77.97.

Watch Out For:

  • 6:45 am GMT: French industrial production (0.3% expected, -0.5% previous)

See more:

U.S. Session Recap

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