- RBA kept rates on hold at 2.50% as expected
- Australia’s building approvals up by 2.5% vs. estimated 1.7% gain
- Australian current account deficit at 13.7 billion AUD as expected
- Nikkei up by 1.34% for the trading day
- Japanese average cash earnings up by 2.6% vs. estimated 0.9% gain
Yen pairs raced higher in today’s Asian forex trading session, as risk appetite improved in the past few hours and allowed the Nikkei to close up by 1.34% for the day. Japan’s average cash earnings saw a 2.6% annualized gain versus the estimated 0.9% increase while the previous period’s reading was upgraded to show a 1.0% rise.
USD/JPY broke out from consolidation at the 104.25 area to a high of 104.85 as of this writing while EUR/JPY chalked up nearly 70 pips in gains. GBP/JPY is currently testing the 174.00 forex handle while AUD/JPY is hovering around the 97.50 minor psychological level.
In Australia, data was mixed, as building approvals showed a strong 2.5% gain while the current account balance showed a wider deficit of 13.7 billion AUD compared to the previous 7.8 billion AUD shortfall. The RBA decided to keep interest rates on hold at 2.50% as expected, reiterating their plans to maintain a period of stability in interest rates.
AUD/USD tumbled by nearly 50 pips after the event and reached a low of .9285 while EUR/AUD recovered back above the 1.4100 mark.
Up for release in the next few hours is the Spanish unemployment change report, which might show a 25.5K increase in joblessness. Swiss GDP is also due today and it is slated to show another 0.5% growth figure. Meanwhile, pound pairs could experience another round of forex volatility with the U.K. construction PMI due and likely to dip from 62.4 to 61.5.
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!