- Chinese trade surplus widened from $18.5 billion to $35.9 billion
- Australian banks on holiday
- Japanese current account surplus at 0.13 trillion JPY vs. 0.23 trillion JPY estimate
- Japan’s Q1 2014 GDP upgraded from 1.5% to 1.6%
- Japanese consumer confidence improved from 37.0 to 39.3
- Nikkei up by 0.31% for today
- German, French, and Swiss banks on holiday
- Euro zone Sentix investor confidence index to show improvement?
Yen pairs saw a lot of action in today’s Asian trading session, as data from Japan provided support for the local currency. The Q1 GDP reading was upgraded from 1.5% to 1.6% instead of being downgraded to the estimated 1.4% figure while consumer confidence showed an improvement from 37.0 to 39.3. On the other hand, the current account surplus fell short of the 0.23 trillion JPY consensus and posted a 0.13 trillion JPY reading.
USD/JPY dropped from a high of 102.63 during the release while EUR/JPY dipped to a low of 139.74. The yen also advanced against the pound, pushing GBP/JPY to a low of 172.20.
Meanwhile, the Australian dollar was able to draw support from upbeat Chinese data, despite Australian banks being closed for a holiday. The Chinese trade surplus widened from $18.5 billion to $35.9 billion in May, outpacing the consensus at $22.6 billion and reflecting a pickup in export activity. AUD/USD rallied past the .9350 level in the past few hours and came close to testing its previous week highs while AUD/JPY edged closer to the 96.00 mark.
Data is light in the upcoming trading session, with only the euro zone Sentix investor confidence index up for release. A small improvement from 12.8 to 13.5 is eyed, possibly enough to give the euro a bit of support against its forex counterparts. Banks in Germany, France, and Switzerland are closed in observance of Whit Monday, which suggests that liquidity might be thin in the next few hours.
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