Article Highlights

  • Fed surprisingly tapers asset purchases by $10 billion
  • New Zealand Q3 2013 GDP at 1.4% vs. 1.1% expected
  • New Zealand trade balance shows $183 million surplus
  • Nikkei hits 6-year highs on Fed taper news
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Contrary to what many are expecting, the major currencies failed to extend the U.S. session moves following the Fed’s decision to taper its asset purchases. USD/JPY dropped by around 50 pips while GBP/USD also fell off its U.S. session highs. Even EUR/USD got a respite from losses as it climbed to the 1.3680 zone.

Only New Zealand had economic reports for us during the Asian session. Not only did Australia’s closest trading neighbor print a trade surplus worth $183 million, but its GDP report also blasted above market expectations. Unfortunately, the reports weren’t enough to entice the NZD/USD bulls as the currency pair continued to trade on the Fed’s decision. It’s currently trading just below .8200.

At 10:00 am GMT today we’ll see the euro zone’s current account numbers, followed by the U.K.’s retail sales report at 10:30 am GMT. With employment numbers printing good results lately, analysts are expecting positive numbers from the report. Still, that doesn’t mean that you shouldn’t prepare for other scenarios if you’re planning on trading the news! Don’t even think of missing this one, kids!

See also:

U.S. Session Recap

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