By FXEmpire.com
Analysis and Recommendation:
The USD/JPY is trading at 78.01 hovering right on the 78 big number. The JPY continues to add strength in risk aversion trading. Markets and speculators remain worried about the actions of the FOMC and also if the EU and the ECB can deliver on their big promises. Their actions in the past indicate they like to make huge press releases to support the currency but never seem to follow through.
Disappointing Chinese Manufacturing PMI also has markets worried about the soft landing in China. After comments last week by an advisor to the PBOC that the growth in China may only report at 7.4% at the end of the year, well below the revision to 7.6 from the 8.1% first forecast.
A continued slowdown in China will hurt its surrounding currencies as well as having an effect on the global economy.
As markets prepare for the release of the FOMC policy statement later today the USD remains weak as investors have turned to gold and the JPY. Additional monetary stimulus would weaken the USD, although it would help the economy.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthlyanalysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.
Economic Data August 1, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|||||||||
|
Aug. 01 |
KRW |
South Korean CPI (YoY) |
1.5% |
2.0% |
2.2% |
|||||||||
|
KRW |
South Korean CPI (MoM) |
-0.2% |
0.3% |
-0.1% |
||||||||||
|
GBP |
BRC Shop Price Index (YoY) |
1.00% |
1.10% |
|||||||||||
|
AUD |
AIG Manufacturing Index |
40.3 |
47.2 |
|||||||||||
|
KRW |
South Korean Trade Balance |
2.70B |
4.90B |
|||||||||||
|
KRW |
South Korean Manufacturing PMI |
47.20 |
49.38 |
|||||||||||
|
CNY |
Chinese Manufacturing PMI |
50.10 |
50.30 |
50.20 |
||||||||||
|
AUD |
House Price Index (QoQ) |
0.50% |
-0.50% |
-0.10% |
||||||||||
|
CNY |
Chinese HSBC Manufacturing PMI |
49.50 |
49.50 |
|||||||||||
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Aug 2 |
1:30 |
AUD |
0.5% |
|
|
1:30 |
AUD |
-0.29B |
||
|
12:30 |
USD |
|||
|
14:00 |
USD |
0.7% |
||
|
23:30 |
AUD |
48.8 |
||
|
Aug 3 |
12:30 |
USD |
80K |
|
|
12:30 |
USD |
8.2% |
||
|
12:30 |
USD |
0.3% |
||
|
14:00 |
USD |
52.1 |
Government Bond Auctions
Date Time Country
Aug 02 08:30 Spain
Aug 06 09:10 Norway
Aug 07 00:30 Japan
Aug 07 09:15 Austria
Aug 07 14:30 UK
Aug 07 17:00 US
Aug 08 09:30 Germany
Aug 08 10:00 Norway
Aug 08 15:30 Italy
Aug 08 17:00 US
Aug 09 15:30 Italy
Aug 09 17:00 US
Aug 10 10:00 Belgium
Click here for further USD/JPY Forecast.
Originally posted here
