USD/JPY Fundamental Analysis August 23, 2012, Forecast

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Analysis and Recommendation:

The USD/JPY is trading at 79.27 as the US dollar weakened in Tuesday’s trade session as investors were on the hunt for more risk assets. Commodity and crosses all gained. The USD declined against the JPY as risk aversion diminished from the markets.

This morning, Japan posted a larger-than-expected trade deficit in July as exports slowed sharply amid Europe’s debt crisis and faltering global growth, a result that is likely to increase pressure on the Bank of Japan to take more easing steps to support the domestic economy.

The gap in the nation’s cross-border trade in goods stood at 517.4 billion yen ($6.53 billion) last month after a Y60.3 billion surplus in June, according to data released Wednesday by the Ministry of Finance.

The deficit–almost double the forecast by economists surveyed by Dow Jones Newswires–came as exports dropped 8.1% on year on weaker Chinese and European demand for Japan-made goods, such as semiconductors. The decline is the largest in six months.

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 23, 2012 actual v. forecast

Date

 

Currency

 

 

 

Event

Actual

 

Forecast

 

Previous

Aug. 22

 

JPY

 

 

 

Trade Balance 

-0.33T

 

-0.46T 

 

-0.32T 

 

 

AUD

 

 

 

MI Leading Index (MoM) 

0.5%

 

 

 

0.9% 

 

 

TWD

 

 

 

Taiwanese Unemployment Rate 

4.25%

 

4.30% 

 

4.24% 

 

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

Date

Time

Currency

Event 

Forecast

Previous

Aug 23

7:30pm

AUD

RBA Gov Stevens Speaks

   
 

8:00pm

AUD

CB Leading Index m/m

 

0.4%

 

3:45am

JPY

BOJ Gov Shirakawa Speaks

   
 

8:30am

USD

Core Durable Goods Orders m/m

0.5%

-1.4%

 

Aug 24

1:00am

AUD

CB Leading Index m/m

   
 

8:45am

JPY

BOJ Gov Shirakawa Speaks

 

0.4%

 

1:30pm

USD

Core Durable Goods Orders m/m

0.5%

-1.4%

 

1:30pm

USD

Durable Goods Orders m/m

2.8%

1.3%

 

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About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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