USD/JPY Fundamental Analysis March 29, 2012, Forecast

By FXEmpire.com

Analysis and Recommendation: (close of Asian session)

The USD/JPY fell versus all of its major counterparts as investors flocked to refuge assets amid a decline in Asian equities.

The yen added 0.3 percent to 82.91 per dollar as of 1:13 p.m. in Tokyo. It strengthened 0.2 percent to 110.52 per euro from 110.75.

Chinese economic data showing a fall in profits in the country’s important industrial sector had weighed on the yen overnight.

Data released by China’s National Bureau of Statistics on Tuesday showed profits in the country’s industrial sector fell 5.2 per cent in the first two months of 2012.

It was the first time since 2009 that the sector has recorded a drop in profits.

China, is one of Japan’s largest trading partner, has lowered its economic growth forecasts to 7.5 per cent this year while recent data releases have shown that the country’s manufacturing sector is continuing to contract.

Economic Data March 27, 2012 actual v. forecast

Mar. 27	JPY	CSPI (YoY)	-0.6%	-0.4%	-0.4%
CHF	Consumption Indicator	0.87	0.93
EUR	German Import Price Index (MoM)	1.0%	1.0%	1.3%
EUR	GfK German Consumer Climate	5.9	6.2	6.0
EUR	French Consumer Confidence	87	83	82
EUR	Netherlands GDP (YoY)	-0.6%	-0.7%	-0.7%
HKD	Hong Kong Trade Balance	-45.8B	-15.0B	-8.9B
EUR	Italian 2-Year CTZ Auction	2.352%	3.013%
GBP	CBI Distributive Trades Survey	0	-4	-2
TRY	Turkish Interest Rate Decision	5.75%	5.75%	5.75%
HUF	Hungarian Interest Rate Decision	7.00%	7.00%	7.00%
USD	S&P/CS Home Price Indices Composite – 20 (YoY)	-3.8%	-3.8%	-4.1%
USD	CB Consumer Confidence	70.2	70.3	71.6
USD	Richmond Manufacturing Index	7	18	20

Economic Events March 29, 2012 that affect the JPY, AUD, and NZD

00:50 JPY Retail Sales (YoY) 1.4% 1.9%

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

13:30 USD Initial Jobless Claims 350K 348K

13:30 USD Continuing Jobless Claims 3365K 3352K

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

13:30 USD GDP Price Index (QoQ) 0.9% 0.9%

The GDP Price Index measures the annualized change in the price of all goods and services included in gross domestic product. It is the broadest inflationary indicator.

13:30 USD GDP (QoQ) 3.0% 3.0%

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.

17:45 USD Fed Chairman Bernanke Speaks

Federal Reserve Chairman Ben Bernanke (February 2006 – January 2014) is to speak. As head of the Fed, which controls short term interest rates, he has more influence over the U.S. dollar’s value than any other person. Traders closely watch his speeches as they are often used to drop hints regarding future monetary policy.

22:45 NZD Building Consents (MoM) 8.3%

Building Consents (also known as Building Permits) measures the change in the number of new building consents issued by the government. Building consents are a key indicator of demand in the housing market.

Government Bond Auctions (this week)

Mar 29 09:10 Italy BTP/CCTeu auction

Mar 29 17:00 US Auctions 7Y Notes

ount:1?

Originally posted here