USD/JPY Fundamental Analysis August 6, 2012, Forecast

posted
By FX Empire Analyst - Barry Norman
Print
Font Size
T
T
T
Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

Analysis and Recommendation:

The USD/JPY is trading at 78.20. Yesterday the pair started to show some movement, with the US gaining a bit of momentum after the Fed's withheld stimulus but after the ECB disappointed investors and markets turned, the USD remained strong as traders sentiment changed. Risk aversion returned in full swing with the yen the major benefactor.

The pair was holding close to the 78.50 price, with the USD gaining momentum, until things flipped around, as the US remained strong market movement changed.

Movement in JPY has remained relatively range bound over the past ten sessions, with a reluctance to move away from 78.20.  Politicians appear to be split on recent proposals for the BoJ to embark on purchases of foreign bonds.  Talk of such action has been brought up by a former BoJ Governor as well as a newly added BoJ Governing board member, in the hopes of driving yen weakness

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Economic Data August 2, 2012 actual v. forecast

Date

 

Currency

 

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Aug. 03

 

AUD

 

 

 

AIG Services Index 

46.5

 

 

 

48.8 

 

 

 

 

CNY

 

 

 

Chinese Non-Manufacturing PMI 

55.60

 

 

 

56.70 

 

 

 

 

CNY

 

 

 

Chinese HSBC Services PMI 

53.10

 

 

 

52.30 

 

 

 

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

Date

Time

Currency

Event 

Forecast

Previous

Aug 6

1:30

AUD

ANZ Job Advertisements m/m

 

-1.2%

 

22:45

NZD

Labor Cost Index q/q

 

0.5%

Aug 7

4:30

AUD

Cash Rate

3.50%

3.50%

 

4:30

AUD

RBA Rate Statement

   
 

23:50

JPY

Current Account

 

0.28T

Aug 8

1:30

AUD

Home Loans m/m

 

-1.2%

 

12:30

USD

Prelim Nonfarm Productivity q/q

 

-0.9%

 

12:30

USD

Prelim Unit Labor Costs q/q

 

1.3%

 

14:30

USD

Crude Oil Inventories

   
 

22:45

NZD

Employment Change q/q

 

0.4%

 

22:45

NZD

Unemployment Rate

 

6.7%

 

23:50

JPY

Core Machinery Orders m/m

 

-14.8%

Aug 9

1:30

AUD

Employment Change

 

-27.0K

 

1:30

AUD

Unemployment Rate

 

5.2%

 

12:30

USD

Trade Balance

 

-48.7B

 

12:30

USD

Unemployment Claims

   

Aug 10

1:30

AUD

RBA Monetary Policy Statement

   
 

12:30

USD

Import Prices m/m

 

-2.7%

 

18:00

USD

Federal Budget Balance

 

-59.7B

 

Find a Broker
Continue to FX Empire Network