By FXEmpire.com
Analysis and Recommendation: (close of Asian session)
The USD/JPY is trading at 80.01 as the yen continues to keep up strength. In overnight trading the US dollar was able to pick up some momentum as investors worries were eased after the French election. Just having it out of the way is important, now it is finding a way for the two leaders to work together.
There was little in the way of eco data to support either currency, and there is little until late in the week. The pair should hold in this range until then.
Finance Minister Azumi reiterated that Japan is watching for speculative yen movement and will act on yen if necessary. The release of the BoJ April 9-10th meeting, were important as they highlight the importance of the Japanese government’s role in monetary policy. The ministry official at the meeting suggested that the BoJ should conduct policy decisively and promptly achieve its inflation target. The yen needs to trade near the 82.00 level for exporters to make profits.
Economic Reports for May 7-8, 2012 actual v. forecast
|
AUD |
Building Approvals (MoM) |
7.4% |
3.1% |
-8.8% |
|
|
AUD |
NAB Business Confidence |
4 |
3 |
||
|
AUD |
Retail Sales (MoM) |
0.9% |
0.2% |
0.3% |
|
|
CHF |
Unemployment Rate |
3.1% |
3.1% |
3.0% |
|
|
CHF |
CPI (MoM) |
0.1% |
0.2% |
0.6% |
|
|
EUR |
German Factory Orders (MoM) |
2.2% |
0.5% |
0.6% |
|
|
Building Permits (MoM) |
4.7% |
-1.5% |
7.6% |
||
|
May 08 |
GBP |
RICS House Price Balance |
-19% |
-10% |
-10% |
|
AUD |
Trade Balance |
-1.59B |
-1.40B |
-0.75B |
Upcoming Economic Events that affect the AUD, NZD, JPY and CNY
|
May 08 |
02:30 |
AUD |
Trade Balance |
-1.59B |
-1.40B |
-0.75B |
|
16:45 |
USD |
FOMC Member Fisher Speaks |
||||
|
May 10 |
02:30 |
AUD |
Employment Change |
-5.5K |
44.0K |
|
|
02:30 |
AUD |
Unemployment Rate |
5.3% |
5.2% |
||
|
Tentative |
CNY |
Chinese Trade Balance |
7.93B |
5.35B |
||
|
13:30 |
USD |
Import Price Index (MoM) |
-0.2% |
1.3% |
||
|
13:30 |
USD |
Trade Balance |
-50.0B |
-46.0B |
||
|
13:30 |
USD |
Initial Jobless Claims |
369K |
365K |
||
|
13:30 |
USD |
Continuing Jobless Claims |
3278K |
3276K |
||
|
14:30 |
USD |
Fed Chairman Bernanke Speaks |
||||
|
19:00 |
USD |
Federal Budget Balance |
30.0B |
-198.2B |
||
|
May 11 |
02:30 |
CNY |
Chinese PPI (YoY) |
-0.3% |
||
|
02:30 |
CNY |
Chinese CPI (MoM) |
0.2% |
|||
|
06:30 |
CNY |
Chinese Fixed Asset Investment (YoY) |
20.9% |
|||
|
06:30 |
CNY |
Chinese Industrial Production (YoY) |
11.9% |
|||
|
06:30 |
CNY |
Chinese Retail Sales (YoY) |
15.2% |
|||
|
13:30 |
USD |
Core PPI (MoM) |
0.3% |
|||
|
13:30 |
USD |
PPI (MoM) |
0.0% |
|||
|
14:55 |
USD |
Michigan Consumer Sentiment |
76.4 |
Government Bond Auctions (this week)
Date Time Country
May 09 09:10 Sweden
May 09 09:30 Germany
May 09 09:30 Swiss
May 09 09:30 UK
May 09 14:30 Sweden
May 09 15:30 Italy
May 09 17:00 US
May 10 15:00 US
May 10 17:00 US
May 11 09:10 Italy BOT auction
May 11 10:00 Belgium
Click here to read USD/JPY Technical Analysis.
Originally posted here
