Article Highlights

  • Nikkei closes 0.14% lower for the day
  • Japanese preliminary machine tool orders up by 48.8%
  • Australia’s government budget data released
  • UK claimant count change and BOE Inflation Report due today
  • Swiss ZEW economic expectations index to improve?
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Ho humm… It was a quiet trading day in the Asian markets, thanks to the lack of top-tier data released in the past few hours. Japan reported a 48.8% year-over-year increase in preliminary machine tool orders yet the Nikkei closed 0.14% lower for the day.

Earlier today, Australia released its government budget balance and reiterated that urgent measures must be taken to trim the deficit. However, officials also noted that fiscal tightening would be a challenge in these hard economic times. Despite that, AUD/USD managed to rally past the .9400 major psychological level while NZD/USD recovered to .8650.

Perhaps traders are reducing their exposure ahead of today’s top-tier data from the U.K. economy. The claimant count change data is up for release and it might show a 30.4K decline in joblessness, which should push the jobless rate down from 6.9% to 6.8% for April. Also lined up for today is the BOE Inflation Report, which would contain the central bank’s revised growth and inflation forecasts. If you’ve got pound trades open or are planning to take positions, make sure your stops are wide enough to accommodate potential volatility during these events!

Also due in the next few hours are euro zone industrial production data and the Swiss ZEW economic expectations index.

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!