- New Zealand quarterly employment up by 0.8%
- New Zealand jobless rate improved from 5.6% to 5.4% in Q3
- Chinese HSBC services PMI down from 53.5 to 52.9
- Japanese average cash earnings down from 0.9% to 0.8% y/y
- Spanish and Italian services PMI, euro zone retail sales due
- U.K. services PMI to fall from 58.7 to 58.5?
And the yen pairs are at it again! A weak medium-tier report from Japan was enough to spark another round of yen selling, with USD/JPY now breaking past the 114.00 barrier. Japanese average cash earnings saw a decline from 0.9% to 0.8% y/y in September, indicating a drop in real wages and a potential downturn in consumer spending.
USD/JPY is up 0.63% at the 114.30 area while EUR/JPY is holding on to a 0.48% gain at 143.20. GBP/JPY is up 0.33% at the 182.33 level and AUD/JPY is up by a mere 0.19%.
The Australian dollar has been weighed down by the decline in China’s HSBC services PMI from 53.5 to 52.9 in October, reflecting a weaker pace of expansion for the industry. AUD/USD is down 0.51% at the .8688 area while NZD/USD is down 0.34%. Not even the stronger than expected New Zealand quarterly jobs report, which marked a 0.8% gain in employment and a decline from 5.6% to 5.4% in the jobless rate, was enough to keep the Kiwi afloat in the Asian trading session.
The forex calendar shows that it’s all about the services PMIs in today’s London trading session. Spain and Italy are set to print small improvements in the services industry while the U.K. might see a dip from 58.7 to 58.5 in October. Also lined up are the euro zone retail sales, which could chalk up a 0.6% decline, and the Swiss CPI. Weak results could lead to currency weakness mostly against the U.S. dollar so y’all better keep tabs on these releases if you’ve got trades open!
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