FXEmpire | April 17 2012 2:57 EDT
Analysis and Recommendation: (close of Asian session)
The USD/JPYhas moved up a bit to trade at 80.4645 at the close of the Asian session. The dollarbought 80.46 yen, against 80.47 in late trading on Monday.
The currency ended where it had started. Japanese industrial production reports showed a larger then forecast drop in production.
The JPY is stronger, up 0.2% from Fridays close, as FX markets continue to show signs of risk aversion.However, safe haven gains in yen are being dampened by dovish rhetoric from the BoJ ahead of the April 27th policy meeting. Governor Shirakawa has stated that the BoJ is maintaining its effort to battle deflation; while market expectations are that the central bank will pursue further easing, in the form of asset purchases.
Economic Reports for April 16-17, 2012 actual v. forecast
Core Retail Sales (MoM)
Foreign Securities Purchases
Retail Sales (MoM)
NY Empire State Manufacturing Index
TIC Net Long-Term Transactions
Monetary Policy Meeting Minutes
Industrial Production (MoM)
Indian Interest Rate Decision
Economic Events scheduled for April 18, 2012 that affect the NZD, AUD, and JPY
00:30:00 AUD Conference Board Australia Leading Index 1.10%
The Conference Board Australia leading Index released by theConference Boardmeasures future trends of the overall economic activity including employment, average manufacturing workweek, initial claims, permits for new housing construction, stock prices and yield curve. It forecasts short to mid-term growth in the Australian economy. Generally, a high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).
22:45:00 NZD Consumer Price Index (QoQ) 0.60% -0.30%
Consumer Price Index released by theStatistics New Zealandis a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services . The purchase power of NZD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the NZD, while a low reading is seen as negative.
23:50:00 JPY Merchandise Trade Balance Total -220.0B 32.9B
The Merchandise Trade Balance Total released by theMinistry of Financeis a measure of balance amount between import and export. A positive value shows a trade surplus while a negative value shows a trade deficit. Japan is so much dependant on exports that the Japanese economy heavily relies on a trade surplus. Therefore, any variation in the figures influences the domestic economy. If a steady demand in exchange for Japanese exports is seen, that
Government Bond Auctions (this week)
Apr 18 09:10 Sweden Nominal bond auction
Apr 18 09:30 Germany Eur 5.0bn 0.25% Mar 2014 Schatz
Apr 18 14:30 Sweden Details T-bill auction on Apr 25
Apr 19 08:30 Spain Obligacion auction
Apr 19 08:50 France BTAN auction
Apr 19 09:30 UK Auctions 0.125% I/L Gilt 2029
Apr 19 09:50 France OATi auction
Originally posted here