- Japan revised industrial production up to 1.1% vs. 1.0% initial reading
- Japan capacity utilization: 1.5% vs. -0.9% previous
- Japan tertiary industry activity: -0.4% vs. 0.1% expected and previous
Japan’s economic data – Japan’s industrial production numbers were revised from 1.0% to 1.1% while capacity utilization also inched higher a 0.9% decline to a 1.5% uptick. Though not exactly the bombshells that forex traders are looking for, the better-than-expected reports helped prop the yen up against its counterparts.
Lower commodity prices weigh on Asian markets – The forex space is a big muddled at the moment, probably because all the action is in the equities market. Asian markets in general saw red after yesterday’s non-committal statements from the Fed increased rate hike speculations in December. Not only that, but commodities also entered into the mix. A larger-than-expected crude stockpiles report from the U.S. weighed on crude oil prices while increased rate hike speculations and concern over China’s growth dragged gold prices lower.
Nikkei is down 0.51%, Hang Seng is down 2.17%, S&P/ASX 200 is down 1.45%, and Shanghai Composite Index is down 0.87%. Talk about a bloodbath!
Major Currency Movers:
USD – The dollar’s price action was mixed with EUR/USD ending the session almost unchanged after hitting a session high of 1.0830 while GBP/USD slipped by 12 pips (-0.08%). The low-yielding currency had better luck against the dollar with USD/JPY staying around the 122.50 levels while USD/CHF traded just above parity.
Comdolls – The sea of red in Asian equities didn’t stop comdoll traders from taking on risk. AUD/USD popped up by 13 pips (+0.18%) while NZD/USD traded 3 pips higher (+0.05%) throughout the session.
- 6:30 am GMT French GDP (expected at 0.3% vs. 0.0% previous)
- 7:00 am GMT German preliminary quarterly GDP (expected at 0.3% vs. 0.4% previous)
- 8:15 am GMT Swiss PPI report (expected at -0.2% vs. -0.1% previous)
- 9:00 am GMT Italian GDP report (expected at 0.3% vs. 0.2% expected)
- 10:00 am GMT Euro Zone quarterly GDP (expected at 0.4% like last month)
- 10:00 am GMT Euro Zone trade balance numbers (expected to show 19.3B EUR surplus vs. 19.8B EUR surplus last month)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!