AUD/JPY hovering above Friday’s lows of 90.56. Target 89.39, but will it bounce first?

FXstreet.com (Barcelona) - The AUD/JPY comes into BOJ Governor Kuroda’s speech in the midst of a sharp move lower – seemingly with plenty of room to the downside until meaningful support is tested.

AUD/JPY even with pre-data levels as traders await the Kuroda speech

The Aussie Dollar / Japanese Yen currency cross (AUD/JPY) came into the new week in bear mode and really did not get any help from slightly weaker-than-expected retail trade data – not that any was really expected ahead of Mr. Kuroda’s speech this morning. So, traders await the Kuroda speech for serious short-term directional guidance.

From a bit more of a macro perspective, there was chatter this weekend of the Chinese government becoming more accepting of a lower baseline economic growth rate so that they can “get their house in order”. Click here for more information on this conversation and how it may pertain to the future of the Australian Dollar.

AUDJPY Technical Outlook

Technicians see the AUD/JPY eventually reaching 89.39 before any real support might come into play – although many are calling for even lower prices. Short-term support comes in at Friday’s low of 90.56 and the 7/12 low of 89.683 before the technicians’ target is reached. Short-term upside comes in at last Wednesday’s peak of 92.73 and is backed up by the June 10th peak at 93.79.

Flash: Rates in NZ over-cooked? RBNZ to remain on hold - RBS

Rate hikes by the RBNZ early next year is not a done deal, according to Greg Gibbs, FX Strategist at RBS, who sees enough evidence that the housing market has cooled recently, stating "possibly responding to its talk of macro-prudential measures, despite the last policy statement was interpreted as more hawkish and sent NZ rates higher to be pricing in rate hikes from Q1 and rates rising 60bp over 12 months."
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BoJ Kuroda: Japan on track to beat deflation

In a speech at a meeting of the Research Institute of Japan, BoJ Kuroda, in headlines crossing now the wires, said he continues to expect a moderate recovery in Japan going forward, while he remains confident that the country is on track to beat deflation, although time will be needed to reach the 2% price level, without specifying a concrete date.
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