11 Nov 2013
Session recap: Another fairly quiet Asian session – despite bullish Chinese data over the weekend
FXstreet.com (Barcelona) - With the US and several other countries taking the day off Monday and with a relatively light data calendar for those countries still open for business, global traders seem to be limiting their trading activity until everyone is back on Tuesday.
Traders applauded bullish Chinese data in spirit but not necessarily with big buying activity
Many of the Asia-Pacific currencies were buoyant to start the week based on the bullish data out of China over the weekend. Most of the opening gap-ups that occurred were given back in relatively short order. However, some currencies like the New Zealand Dollar managed to rally back and build on some of the short-term optimism – but that positive action was not seen across the board in risk currencies.
Yen strong despite the strength in the Nikkei
Typically over the recent past, whenever there was a risk-on attitude in Asian equity markets in general and in the Nikkei in particular, the Japanese yen would take a dive. Today during the Asian session, however, both the Nikkei and the Yen have been on the rise. It stands to reason – based on the recent relationships – that eitehr the Yen will begin to tumble as the Nikkei rallies or the yen will stay strong and it will be a switch back to “risk off” that occurs.
Data released during the Asian session:
• New Zealand Electronic Card Retail Sales came in hotter than expected;
• Japanese Current Account came out better than expected (Yen bullish – in theory);
• Japanese Trade Balance better than expected (Yen-bullish – in theory);
• Japanese Trade Data came out and showed a lower than expected deficit;
• Aussie Home Loans and Investment Lending for Homes came in better than expected (AUD-bullish);
• Japanese Eco-Watchers Survey came in below expectations (little / no reaction in the Yen);
For the rest of the Monday session, only a speech being given by the German Bundesbank President,
Dr. Jens Weidmann, is on the schedule and that may be “market-moving”.
Main headlines in Asia:
New Zealand October Electronic Card Retail Sales (YoY) increase to 7% vs 3.5%
EUR/USD enters new week broken technically, near oversold but with more room to fall
Japan September Trade Balance - BOP Basis improves to ¥-874.8B vs ¥-885.9B
ECB members divided on policy tools
Gold slammed by the bullish action in the DXY and has more room to fall still
EUR/JPY finds offers at 132.50, last week's trendline left behind
Australian housing finance surges
Bouncing equities in Asia
Japan Eco Watchers Survey: Outlook rises to 54.5 in October from 54.2
Traders applauded bullish Chinese data in spirit but not necessarily with big buying activity
Many of the Asia-Pacific currencies were buoyant to start the week based on the bullish data out of China over the weekend. Most of the opening gap-ups that occurred were given back in relatively short order. However, some currencies like the New Zealand Dollar managed to rally back and build on some of the short-term optimism – but that positive action was not seen across the board in risk currencies.
Yen strong despite the strength in the Nikkei
Typically over the recent past, whenever there was a risk-on attitude in Asian equity markets in general and in the Nikkei in particular, the Japanese yen would take a dive. Today during the Asian session, however, both the Nikkei and the Yen have been on the rise. It stands to reason – based on the recent relationships – that eitehr the Yen will begin to tumble as the Nikkei rallies or the yen will stay strong and it will be a switch back to “risk off” that occurs.
Data released during the Asian session:
• New Zealand Electronic Card Retail Sales came in hotter than expected;
• Japanese Current Account came out better than expected (Yen bullish – in theory);
• Japanese Trade Balance better than expected (Yen-bullish – in theory);
• Japanese Trade Data came out and showed a lower than expected deficit;
• Aussie Home Loans and Investment Lending for Homes came in better than expected (AUD-bullish);
• Japanese Eco-Watchers Survey came in below expectations (little / no reaction in the Yen);
For the rest of the Monday session, only a speech being given by the German Bundesbank President,
Dr. Jens Weidmann, is on the schedule and that may be “market-moving”.
Main headlines in Asia:
New Zealand October Electronic Card Retail Sales (YoY) increase to 7% vs 3.5%
EUR/USD enters new week broken technically, near oversold but with more room to fall
Japan September Trade Balance - BOP Basis improves to ¥-874.8B vs ¥-885.9B
ECB members divided on policy tools
Gold slammed by the bullish action in the DXY and has more room to fall still
EUR/JPY finds offers at 132.50, last week's trendline left behind
Australian housing finance surges
Bouncing equities in Asia
Japan Eco Watchers Survey: Outlook rises to 54.5 in October from 54.2