forex signals

Asia Session Recap



The JPY crosses rallied on Friday after US non-farm payrolls came at +110k better than expectations of +100k. Asia began the week with more of the same as they pushed the JPY crosses higher as USD/JPY regained the 117 handle. EUR/USD still is finding resistance around the 1.4160 area but there was still some appetite to sell the dollar in other pairs. AUD/USD and NZD/USD both gapped higher from Friday's highs and continue to trade near their session highs.

Part of the reason that AUD/USD rallied to new multi-year highs may have been because of some interest by the Chinese who were out on holiday last week. Australia is a large producer of commodities and is in close proximity to China. Also, gold has remained resilient to selling pressure as it was bought on dips last week. AUD/USD benefits because gold is generally negatively related to the USD and Australia is a larger producer of the yellow metal.

Looking forward, the focus in Asia will be on the Bank of Japan rate decision which is expected to be unchanged. Also, in the US we are expecting retail sales, a key aspect of the economy since consumer spending is a major component of Gross Domestic Product. This week has begun with the JPY crosses trading higher and the dollar still weak in many pairs but will the trend continue this week?

Upcoming Data Releases (London Session):

  • EC: (2am ET) Trichet speaks at Brussels Think Tank.
  • UK: (4:30am ET) Producer Price Index (relevance: medium). Industrial Production (relevance: medium).
  • Germany: (6am ET) Factory orders (relevance: medium).
By: Forex.com

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