Article Highlights

  • 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
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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.

See also:

U.S. Session Recap

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

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