31 Oct 2013
Session Recap: A continuation of “risk off” trading and heavy data flow color the Asian session
FXstreet.com (Barcelona) - The Asian session has seen a continuation in the downside corrective action in risk assets (S&P futures down 7, EUR/JPY and AUDJPY down as well) that commenced late in Wednesday’s US session. Media types attribute the selling to renewed concerns about the Fed’s QE-tapering program commencing in December / January instead of in the Spring / Summer of 2014. Whether those concerns are warranted is up for debate. The selling in risk assets also meant inflows into “safety assets” including currencies like the Yen and the US Dollar.
There was plenty of market-moving data released during Thursday’s Asian session:
New Zealand has a part in the play Thursday
The NZD/USD cross took a fairly sharp dive following the RBNZ’s decision to leave interest rates unchanged – perhaps a reflection of some built-in expectations of more hawkishness from the bankers.
Bank of Japan announcement and other Japanese data have the Yen on the rise
The Yen rallied on a combination of a “steady as she goes” BOJ decision / commentary and better-than-expected Japanese construction orders and annualized housing starts.
“Hot” data sent the Aussie Dollar shooting higher
The Aussie Dollar reacted very bullishly to a flurry of minor data points in Australia including red hot Aussie building permits, import / export prices and private sector credit numbers.
Main headlines in Asia
US Treasury FX report: Germany's surplus creates euro deflation pressures
New Zealand September Building Permits s.a. (MoM) declines to 1.4% vs 1.54%
Japanese lifers likely to be dip buyers of USDJPY - Nomura
RBNZ to begin hiking rates in April next year - Westpac
RBNZ rate increases inevitable in 2014 - ANZ
United Kingdom: Gfk Consumer Confidence (October): -11 vs -10
Huge jump in Australian building permits
Stagnant Japanese wages to put a cap on inflation
Bank of Japan keeps monetary policy steady
EUR/USD breaks 1.37 on ECB's Nowotny headline
There was plenty of market-moving data released during Thursday’s Asian session:
New Zealand has a part in the play Thursday
The NZD/USD cross took a fairly sharp dive following the RBNZ’s decision to leave interest rates unchanged – perhaps a reflection of some built-in expectations of more hawkishness from the bankers.
Bank of Japan announcement and other Japanese data have the Yen on the rise
The Yen rallied on a combination of a “steady as she goes” BOJ decision / commentary and better-than-expected Japanese construction orders and annualized housing starts.
“Hot” data sent the Aussie Dollar shooting higher
The Aussie Dollar reacted very bullishly to a flurry of minor data points in Australia including red hot Aussie building permits, import / export prices and private sector credit numbers.
Main headlines in Asia
US Treasury FX report: Germany's surplus creates euro deflation pressures
New Zealand September Building Permits s.a. (MoM) declines to 1.4% vs 1.54%
Japanese lifers likely to be dip buyers of USDJPY - Nomura
RBNZ to begin hiking rates in April next year - Westpac
RBNZ rate increases inevitable in 2014 - ANZ
United Kingdom: Gfk Consumer Confidence (October): -11 vs -10
Huge jump in Australian building permits
Stagnant Japanese wages to put a cap on inflation
Bank of Japan keeps monetary policy steady
EUR/USD breaks 1.37 on ECB's Nowotny headline