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6 Feb 2013
Forex Flash: USD/JPY pushes envelope while AUD wounds fail to heal – OCBC Bank
Emmanuel Ng of OCBC Bank notes that USD/JPY remains at the mercy of political and central bank rhetoric while AUD has suffered at the hand of soft data.
Starting with USD/JPY, he notes that in the near term, the pair may continue to push the envelope on the upside with buoyant JPY-crosses acting as a backdrop, although 93.80 is seen as an immediate resistance. He feels that with the BOJ expected to be the most dovish central bank on the street, investors may continue to deem a weak-JPY trade as the path of least resistance for now.
Looking to AUD/USD, Ng notes that the weaker than expected retail sales numbers rubbed salt into the AUD’s wounds this morning and with the breach of 1.0400, markets may potentially look to the 200-day MA (1.0312) before the psychological 1.0300 level. He finishes by writing, “Meanwhile, the relative under performance of the Aussie continues to be demonstrated by the AUD-NZD, with the cross having staged a concerted break below the 1.2400 level.”
Starting with USD/JPY, he notes that in the near term, the pair may continue to push the envelope on the upside with buoyant JPY-crosses acting as a backdrop, although 93.80 is seen as an immediate resistance. He feels that with the BOJ expected to be the most dovish central bank on the street, investors may continue to deem a weak-JPY trade as the path of least resistance for now.
Looking to AUD/USD, Ng notes that the weaker than expected retail sales numbers rubbed salt into the AUD’s wounds this morning and with the breach of 1.0400, markets may potentially look to the 200-day MA (1.0312) before the psychological 1.0300 level. He finishes by writing, “Meanwhile, the relative under performance of the Aussie continues to be demonstrated by the AUD-NZD, with the cross having staged a concerted break below the 1.2400 level.”