Article Highlights

  • Chinese trade surplus shrank from 60.6 billion USD to 3.1 billion USD in March
  • Japanese Feb core machinery orders down 0.4% vs. estimated 2.6% decline
  • Producer prices up 0.7% in Japan, higher than 0.4% estimate
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Dollar bulls were eager to charge in today’s Asian trading session, as the U.S. currency gapped higher against most of its forex counterparts. GBP/USD is down 35 pips (-0.25%) and USD/JPY is up 17 pips (+0.14%) while EUR/USD managed to hold on to the 1.0600 handle (+0.04%).

Commodity currencies are faring much worse so far, after China printed a dismal trade balance for March. The surplus shrank from 60.6 billion USD to a meager 3.1 billion USD figure for the month, with both imports and exports posting sharp declines. AUD/USD is facing a 73-pip loss (-0.95%) and NZD/USD is down 48 pips (-0.63%) since the report reflects lower demand for commodities.

In Japan, data was mostly stronger than expected. Core machinery orders chalked up a smaller than expected 0.4% dip instead of the projected 2.6% tumble. Producer prices logged in a 0.7% gain, higher than the estimated 0.4% increase. Because of that, the yen was able to advance to the pound and the comdolls in the past few hours.

It’s going to be a data-light London trading session since there are no top-tier reports in sight. The only news report scheduled to be released is the Italian industrial production figure, which could show a 0.5% rebound for February and possibly keep the euro afloat. Do stay on your toes for any forex market updates that might affect risk sentiment!

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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