Economic Goings On:
- Japan All Industries Activity m/m better than expected at -1.7% Vs -2.0% forecast.
- Australian Housing Starts q/q much worse than expected at -9.9% Vs +1.0% forecast.
- Australian New Motor Vehicle Sales m/m -3.5% Vs -1.1% previously.
- BOJ Monthly Report Released – states the economy has deteriorated and is likely to keep deteriorating.
- Recap of the US Fed’s overnight decision.
- Upcoming economic data table.
Forex Market News:
- As expected, the Asian session saw the FX market retrace some of the overnight move. The only star of note today has been the JPY which has continued to strengthen, with the USD/JPY trading down to a low for the day of 95.35 after the release of the BOJ monthly report. Expect to see a test of 94.50 if not 92.50.
- The AUD/USD has stalled ahead of the 0.6800/10 region which we need to take out to move the focus to the 0.7200 level.
- While the EUR/USD remains above 1.3400 it targets the 1.3800 level.
- Sean made a good point about the EUR/CHF which is worth reading.
- The EUR/JPY achieved our initial target of 130.00 and has slipped back from that level during today’s Asian trading.
- Asian equity markets remain mixed with the Hang Seng and Australian All Ords up so far with the Nikkei in negative territory with a weaker USD offsetting any benefits the Feds recession strategy may have delivered to the struggling exporters.
- Ranges So Far: EURUSD 1.3414/1.3511, USDJPY 95.32/96.61, GBPUSD 1.4154/1.4312, USDCHF 1.1385/1.1453, AUDUSD 0.6720/0.6800, EURJPY 128.49/130.32, AUDJPY 64.42/65.53.
- Charts of the majors and crosses to give you an idea of the price action we have seen today.
