- Japanese tertiary industry activity index dropped by 0.3%
- Nikkei down by 0.33% for the day
- Chinese annual CPI down from 1.5% to 0.8% in Jan
- Producer prices in China down by 4.3% y/y vs. estimated 3.7% decline
- Australia’s NAB business confidence index up from 2 to 3
- Swiss jobless rate and CPI data due
- U.K. manufacturing production to show 0.3% gain?
I’m seeing red! The forex calendar was filled with mostly weaker-than-expected economic data for today’s Asian trading session, yet risk appetite seems to have stayed in play. AUD/USD is up 0.4%, thanks to the uptick in Australia’s NAB business confidence index, and NZD/USD is 0.46% higher while yen pairs are also in the green so far.
In Japan, the tertiary industry activity index marked a 0.3% drop for December instead of showing the estimated 0.1% gain. This was also weaker compared to the previous month’s 0.2% uptick, hinting that economic activity is starting to slow down. USD/JPY edged lower to the 118.50 area after the release (-0.16%) while other yen pairs struggled to hold on to their recent gains.
China’s inflation reports stole the spotlight later on, as the world’s second largest economy printed bleak figures. The annual CPI reading fell from 1.5% to 0.8% in January, reflecting potential disinflation and possibly more easing moves from the Chinese central bank. Producer prices printed a sharp 4.3% tumble, worse than the projected 3.7% decline, and marked its 34th consecutive monthly drop.
A bit more forex action is expected among the European currencies in the upcoming London trading session, with a few medium-tier reports lined up from the euro zone, Switzerland, and the United Kingdom. French and Italian industrial production figures are lined up starting 8:45 am GMT while Switzerland is set to print its unemployment rate and CPI data at 9:15 am GMT. Pound pairs could also enjoy more volatility during the release of the U.K. manufacturing production report, which might indicate a 0.3% uptick.
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