By FXEmpire.com

Analysis and Recommendation:

The USD/JPY finally broke above the 78.50 level; yesterday the pair was sitting right at 78.51 before declining after announcements from the BoJ, that they were holding rates and policy. The pair are trading at 78.57 and climbing this morning

The USD eventually strengthened on positive eco data, with the US trade balance and jobs report adding positive sentiment.

The Japanese economy has been growing suspect with a decline in Core Machinery orders below forecast and a decline in CGPI this morning. This added to negative eco data from China, all together weakened the JPY.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data August 9 -10, 2012 actual v. forecast (it is important to note the Chinese data releases)

Aug. 09

AUD

Employment Change

14.0K

10.0K

-28.3K

AUD

Unemployment Rate

5.2%

5.3%

5.3%

CNY

Chinese CPI (YoY)

1.8%

1.7%

2.2%

CNY

Chinese PPI (YoY)

-2.9%

-2.5%

-2.1%

CNY

Chinese CPI (MoM)

0.1%

-0.1%

-0.6%

JPY

Interest Rate Decision

0.10%

0.10%

0.10%

CNY

Chinese Fixed Asset Investment (YoY)

20.4%

20.5%

20.4%

CNY

Chinese Industrial Production (YoY)

9.2%

9.8%

9.5%

CNY

Chinese Retail Sales (YoY)

13.1%

13.7%

13.7%

GBP

Trade Balance

-10.1B

-8.6B

-8.4B

CAD

Housing Starts

208.5K

213.0K

222.1K

CAD

Trade Balance

-1.8B

-1.0B

-0.9B

USD

Trade Balance

-42.9B

-47.5B

-48.0B

USD

Initial Jobless Claims

361K

370K

367K

USD

Continuing Jobless Claims

3332K

3280K

3279K

Aug. 10

PEN

Peruvian Interest Rate Decision

4.25%

4.25%

JPY

CGPI (YoY)

-2.1%

-1.6%

-1.3%

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date

Time

Currency

Event

Previous

Aug 13

13th-14th

NZD

REINZ HPI m/m

0.3%

22:45

NZD

Core Retail Sales q/q

-2.5%

23:50

JPY

Monetary Policy Meeting Minutes

23:50

JPY

Tertiary Industry Activity m/m

0.7%

Aug 14

1:30

AUD

NAB Business Confidence

-3

1:30

AUD

New Motor Vehicle Sales m/m

-0.6%

12:30

USD

Core Retail Sales m/m

-0.4%

12:30

USD

PPI m/m

0.1%

12:30

USD

Retail Sales m/m

-0.5%

14:00

USD

Business Inventories m/m

0.3%

Aug 15

0:30

AUD

Westpac Consumer Sentiment

3.7%

1:30

AUD

Wage Price Index q/q

0.9%

12:30

USD

Core CPI m/m

0.2%

12:30

USD

Empire State Manufacturing Index

7.4

13:00

USD

TIC Long-Term Purchases

55.0B

13:15

USD

Capacity Utilization Rate

78.9%

13:15

USD

Industrial Production m/m

0.4%

14:30

USD

Crude Oil Inventories

Aug 16

1:00

AUD

MI Inflation Expectations

3.3%

12:30

USD

Building Permits

0.76M

12:30

USD

Housing Starts

0.76M

14:00

USD

Philly Fed Manufacturing Index

-12.9

22:45

NZD

PPI Input q/q

0.3%

Aug 17

13:55

USD

Prelim UoM Consumer Sentiment

72.3

Government Bond Auctions

Date Time Country

Aug 13 09:10 Italy

Aug 13 09:10 Norway

Aug 13 09:30 Germany

Aug 14 09:10 Greece

Aug 14 09:10 Italy

Aug 14 09:30 Belgium

Aug 14 14:30 UK

Aug 15 09:10 Sweden

Aug 16 09:30 UK

Aug 16 15:00 US

Click here for further USD/JPY Forecast.

Originally posted here