Article Highlights

  • AU retail sales shows another 0.4% growth as expected
  • AU trade deficit: 2.32B AUD vs. 2.90B AUD expected, 3.10B AUD previous
  • China Caixin services PMI: 52.0 vs. 51.0 expected, 50.5 previous
  • AU AIG services index: 48.9 vs. 52.3 previous
  • UK BRC shop price index: -1.8% vs. -1.9% previous
  • Japan monetary base (y/y): 32.5% vs. 35.1% previous
  • Japan consumer confidence: 41.5 vs. 41.1 expected, 40.6 previous
  • Euro Zone services PMI reports due today
Partner Center Find a Broker

Japanese forex traders are back in the game and this time they’re buying up high-yielding currencies. Here are the major events during the Asian session.

Major events:

Australia’s data releases – A couple of hours ago the Land Down Under printed its retail sales and trade numbers and both passed market expectations. Retail sales popped up by another 0.4% in September following a rebound in August and a slip in July.

Meanwhile, trade deficit narrowed down to 2.32B AUD in September when market players had been expecting a 2.90B AUD deficit for the month and dealt with a 3.10B AUD deficit in August. A closer look reveals that the value of exports, led by a 10% export in gold, had risen by $901M (3.0%) while imports

China’s services PMI – Caixin’s services PMI release came in at 52.0 when market players had only been expecting a 51.0 figure. Caixin’s composite index also reflected improvement with its 49.9 reading in October after a 48.0 print in September. Both reports printed at their three-month highs and support speculations that the government’s stimulus measures are making impact in their industries.

Japanese traders are back – After yesterday’s Culture Day holiday, Japanese traders are back in the game and might have helped push high-yielding currencies higher with their start-of-month trades. What do you think?

Major Currency Movers:

AUD – Australia’s better-than-expected reports as well as China’s positive indices supported the supported the RBA’s recent less-dovish-than-expected policy statement and boosted the comdoll. AUD/USD reached a session high 25 pips higher (0.35%) than its open price while AUD/JPY is up by 16 pips (+0.18%) and AUD/NZD is up by 85 pips (+0.79%).

NZD – Still affected by the less favorable dairy auction results. NZD/USD is down 48 pips (-0.72%) to .6654 while NZD/JPY dropped by 46 pips (0.57%) and GBP/NZD is up by a nice 130 pips (+0.56%) to 2.3169.

USD and JPY – The overall risk-friendly trading environment took its toll on the low-yielding currencies. USD/JPY popped up to 121.38 before trading back down to 121.19 while EUR/USD recovered from its 1.0938 session low to trade at 1.0950. GBP/JPY also hit a high of 187.18 before settling down to 186.86.

Watch out for:

French Services PMI at 8:50 am GMT
German Services PMI at 8:55 am GMT
Euro Zone Composite PMI at 9:00 am GMT
Euro Zone Services PMI at 9:00 am GMT
UK Services PMI at 9:00 am GMT
Euro Zone PPI at 10:00 am GMT

See more:

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!