Asian Session Forex Recap – Sept. 28, 2016

  • Oil prices tick higher on U.S. inventory data
  • Nikkei leads risk aversion

Ho-hum. With not a lot of data scheduled today, forex traders had their eyes on risk sentiment and Asian equities price action.

Major Events:

Nikkei leads risk aversion – With not a lot of data scheduled for release, forex traders trained their eyes on price movements of Asian equities. Unfortunately for risk-takers, Nikkei’s decline was the benchmark for risk sentiment throughout the session.

Nikkei was the queen bee that led investors into selloffs after a strong yen continued to weigh on investor sentiment. Of course, it also didn’t help that many companies made their ex-dividend adjustments today, which put more pressure on Japanese equities.

Nikkei is down by 1.53%, Australia’s ASX is down by 0.05%, Hang Seng is down by 0.65%, and the Shanghai index is down by 0.35%.

Recovery in oil prices – Overall risk aversion didn’t rain on the oil traders’ parade today, as Black Crack prices recovered across the Atlantic. One possible reason is the American Petroleum Institute (API) data, which showed a decline of 752,000 barrels instead of rising by 3 million barrels last week.

Brent is up by 0.49% to $46.75 while U.S. crude oil prices also rose by 0.29% to $44.80.

Major Market Movers:

USD – Low-yielding currencies like the dollar benefited from the overall risk aversion vibe during the session.

EUR/USD is down by 9 pips (-0.08%) to 1.1212, GBP/USD is down by 9 pips (-0.07%) to 1.3005, and NZD/USD is down by 19 pips (-0.26%) to .7277.

JPY – The yen lost pips across the board, possibly on profit-taking from Japanese equities.

USD/JPY is up by 22 pips (+0.22%) to 100.58, EUR/JPY inched 14 pips higher (+0.12%) to 112.75, and AUD/JPY is up by 20 pips (+0.26%) to 77.13.

Watch Out For:

  • 6:00 am GMT: German import prices (-0.1% expected, 0.1% previous)
  • 10:00 am GMT: U.K. CBI realized sales (8 expected, 9 previous)

See also:

U.S. Session Recap
London Session Recap

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