The USD/JPY currency pair again reached a new 9-month high during the day’s Tokyo session above ¥145.50.
- The USD/JPY currency pair advanced again during the Tokyo session to print a new 9-month high above ¥145.50. This is a result of both Dollar strength and Yen weakness. Trend traders and yield traders will be interested in being long of this currency pair. The Dollar is bullish with rising short-term yields while the Japanese Yen remains one of the weakest major currencies on the Bank of Japan’s ultra-loose monetary policy. However, bulls will be wary that the Bank of Japan may intervene again as it did the last time the price reached this area.
- The NZD/USD currency pair traded lower again yesterday to make a new 9-month low price well below the big round number at $0.6000 but has since recovered.
- Global stock markets are mostly higher, but the Chinese stock market is notably lower on poor sentiment partly caused by the release of disappointing industrial production data, despite the 15 basis-point rate cut which was announced a few hours ago. The HSI is down today by more than 1%.
- WTI Crude Oil is making a bearish retracement after strongly breaking to new 8-month high prices last week. Trend traders might find it interesting to seek to get involved here on the long side.
- In the Forex market, the Australian Dollar has been the strongest major currency since the Tokyo open, with the US Dollar the weakest, putting the AUD/USD currency pair into focus. The Aussie may have been boosted slightly by the release of the RBA’s latest meeting minutes, which emphasised a willingness to hike rates further if necessary. Despite this, the US Dollar looks bullish, having just made a bullish breakout above a falling wedge chart pattern.
- There will be releases later today of:
- US Retail Sales data
- Canadian CPI (inflation)
- Reserve Bank of New Zealand’s Official Cash Rate & Rate / Monetary Policy Statements
- US Empire State Manufacturing Index data
- UK Claimant Count Change