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Forex Flash: USD/JPY pushes envelope while AUD wounds fail to heal – OCBC Bank

Emmanuel Ng of OCBC Bank notes that USD/JPY remains at the mercy of political and central bank rhetoric while AUD has suffered at the hand of soft data.

Starting with USD/JPY, he notes that in the near term, the pair may continue to push the envelope on the upside with buoyant JPY-crosses acting as a backdrop, although 93.80 is seen as an immediate resistance. He feels that with the BOJ expected to be the most dovish central bank on the street, investors may continue to deem a weak-JPY trade as the path of least resistance for now.

Looking to AUD/USD, Ng notes that the weaker than expected retail sales numbers rubbed salt into the AUD’s wounds this morning and with the breach of 1.0400, markets may potentially look to the 200-day MA (1.0312) before the psychological 1.0300 level. He finishes by writing, “Meanwhile, the relative under performance of the Aussie continues to be demonstrated by the AUD-NZD, with the cross having staged a concerted break below the 1.2400 level.”

Forex Flash: Shirakawa’s early departure can help maintain the yen’s downward trajectory - Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the announcement that BOJ Governor will step down early, on March 19 (the same day as his two Deputy-Governors leave their roles) accelerates the change of guard at the BOJ and the introduction, he assumes, of a team sympathetic to PM Abe’s desire for a weaker currency.
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Forex Flash: Euro upside eases this week as unease grows – BTMU

Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that Euro upward momentum has eased early this week although its recent strengthening trend is prompting increasing unease amongst European policymakers.
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