Australia Trade Deficit Press AUDUSD. Australia's trade deficit was reported missed estimates as compared to the estimated 2637 billion USD -2.3 billion USD, while the worst level recorded in the last 5 years, due to a combination of weak commodity prices, a higher exchange rate and an increase in imports contributed to the overall deficit trade for 11 consecutive months. Exports rose 1%, while imports increased by 2%. Analysts commented that the trade balance figures there is still hope to improve this year but remain in deficit territory.
Aussie fell sharply as a result of this data, depressed below level 1.0500. Technically, pairing AUDUSD still stuck in trading range 1.0550 - 1.0450 in recent days, but the level of support is likely to be penetrated due to the trade deficit and the RBA rate expectations are likely to be lowered to weaken the exchange rate impact on the Trade Balance as rate decreased demand for commodities drastically.
Yen Ignore Speculation BOJ Policy
The yen rose for a second day, extending its rally from 2-1/2 year lows against the dollar, the speculation the Bank of Japan should take concrete steps to weaken the yen. Japan's currency gained at least 0.4% against all currencies even as Finance Minister Taro Aso said the government would membelii euro bonds to help weaken the yen. The euro also weakened against the yen as a report that shows a level of German exports fell more than economists forecast in November. Pound near monthly lows against the dollar after an industry report showed UK retail sales slowed in December.
"Much of the focus fell on the steps to be taken the Bank of Japan and much is going to happen," said Geoff Kendrick, head of European foreign exchange strrategis at Nomura International Plc in London. "The market is a little restraint. In the short term, it takes a bit of a catalyst to push down. "
Japanese Try Hold Performance Of Euro
Euro strengthening thin record in the London session, supported by Finance Minister Taro Aso's comments that affirmed the commitment of Japan to keep buying bonds the euro-zone bailout fund, the ESM. Nevertheless, the strategic view that decision will not be significant because Japan would use its euro reserves to buy bonds ESM. EUR / USD is now trading 1.3122, close to the level of 1.3139 daily high "The comments of the Minister of Finance of Japan did manage to sustain the performance of the euro. However, conscious Japanese market will only use its euro reserves to buy bonds ESM," said Geoff Kendrick, strategic Nomura. Investors are now adjusting positions ahead of the ECB meeting on Thursday, which predicted the European Central Bank will not change its monetary policy.
Aussie fell sharply as a result of this data, depressed below level 1.0500. Technically, pairing AUDUSD still stuck in trading range 1.0550 - 1.0450 in recent days, but the level of support is likely to be penetrated due to the trade deficit and the RBA rate expectations are likely to be lowered to weaken the exchange rate impact on the Trade Balance as rate decreased demand for commodities drastically.
Yen Ignore Speculation BOJ Policy
The yen rose for a second day, extending its rally from 2-1/2 year lows against the dollar, the speculation the Bank of Japan should take concrete steps to weaken the yen. Japan's currency gained at least 0.4% against all currencies even as Finance Minister Taro Aso said the government would membelii euro bonds to help weaken the yen. The euro also weakened against the yen as a report that shows a level of German exports fell more than economists forecast in November. Pound near monthly lows against the dollar after an industry report showed UK retail sales slowed in December.
"Much of the focus fell on the steps to be taken the Bank of Japan and much is going to happen," said Geoff Kendrick, head of European foreign exchange strrategis at Nomura International Plc in London. "The market is a little restraint. In the short term, it takes a bit of a catalyst to push down. "
Japanese Try Hold Performance Of Euro
Euro strengthening thin record in the London session, supported by Finance Minister Taro Aso's comments that affirmed the commitment of Japan to keep buying bonds the euro-zone bailout fund, the ESM. Nevertheless, the strategic view that decision will not be significant because Japan would use its euro reserves to buy bonds ESM. EUR / USD is now trading 1.3122, close to the level of 1.3139 daily high "The comments of the Minister of Finance of Japan did manage to sustain the performance of the euro. However, conscious Japanese market will only use its euro reserves to buy bonds ESM," said Geoff Kendrick, strategic Nomura. Investors are now adjusting positions ahead of the ECB meeting on Thursday, which predicted the European Central Bank will not change its monetary policy.
