- Australia’s NAB business confidence down from 7 to 5 in Sept
- Nikkei closed 2.38% in the red today
- U.K. headline and core CPI to show weaker price pressures?
Risk aversion appears to be in the driver’s seat of forex price movements so far, as higher-yielding currencies gave up ground to the safe-havens. EUR/USD has retreated 0.24% and is edging closer to the 1.2700 major psychological support while GBP/USD is down 0.10% to a low of 1.6064.
In Australia, the NAB business confidence index showed a decline from 7 to 5 in September, reflecting weaker optimism for the month. Despite that, AUD/USD is up 0.12% at .8775 while AUD/JPY has seen a 0.38% gain so far at a few pips above the 94.00 mark.
The Nikkei closed with a significant 2.38% loss for the day, indicating that risk appetite is still weak. Perhaps the upcoming releases from the U.K. and the euro zone could continue to keep forex risk-taking in check, with the U.K. CPI and German ZEW economic sentiment figures up for release starting 9:30 am GMT.
The forex calendar shows that analysts expect the U.K. headline CPI to fall from 1.5% to 1.4% in September and the core figure to dip from 1.9% to 1.8%, farther away from the BOE’s 2% annual inflation target. Meanwhile, the German ZEW index is slated to drop from 6.9 to 0.2, reflecting a downbeat outlook for the euro zone’s largest economy for the current month.
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