Japanese Yen, USD / JPY, FOMC, Australian Consumer Price Index – call points
- Japanese yen strengthens versus USD as confirmed by traders FOMC
- The Australian CPI set the wires to cross, which could drive RBA stakes
- USD / JPY tests the main moving average after an overnight decline
Wednesday’s Asia-Pacific outlook
The safe-haven Japanese yen attracted attention overnight as traders placed their portfolios in the Federal Reserve to decide on this week’s high-profile interest rates. Wall Street saw heavy losses from technology and small-cap stocks Nasdaq 100 The index falls above 1% of its value. Chinese stocks listed on the US stock market fell again due to regulatory fears from China, which may ultimately show that foreign quotes are pulling US stock markets down. Several technology titans reported quarterly earnings, including Apple and the alphabet, after New York’s closing time.
China’s recent regulatory measures, apparently aimed at strengthening the enforcement of anti-competitive measures, have put enormous pressure on Chinese equities. The repression is part of a wider effort to regulate financial markets in the economy. Earlier this year, Beijing signaled its outrage at high-flying commodity prices and has since released state reserves to cool prices. This includes the supply of domestic markets oil reserves that are likely to change lower Chinese oil imports.
Despite the influx of shelters into the yen, US dollar– which also has its own risk complaint – fell sharply overnight. This is due to the rejection of Fed interest rate hike predictions, which will lead to tomorrow’s FOMC decision, as evidenced by the federal fund futures through the CME Group’s FedWatch tool. The probability of an increase of 25 basis points at the June 2022 meeting fell from 19.1% to 14.0% in the last 24 hours. Traders are carefully analyzing the central bank’s statement, and Fed Fed Powell’s comments, which could lead to excessive volatility, should either cause surprises.
Speaking of monetary policy contributions, the outlook for the Reserve Bank of Australia (RBA) will be key to today’s session. Australia’s second-quarter inflation rate is expected to cross the wires at 1:30 GMT. The consensus estimates that it is 3.8% year-on-year and 0.7% quarter-on-quarter. Printing hotter than expected may revive some RBA rate camping stakes. The current wave of Covid has closed New South-Wales from South-Australia to South Australia, putting a dark cloud over the economic outlook.
USD / JPY Technical Outlook:
The Japanese yen saw a strong overnight movement against the Greenback, with the USD / JPY falling to a simple 100-day high on an overnight average. The decline of the currency pair eased slightly, rising back to the level of 23.6% Fibonacci retracement. The key to the yen’s progress is breaking the 100-day SMA. Alternatively, the higher rise indicates a upward trend in prices, which led to lower prices last week.
USD / JPY daily card
The chart has been created TradingView
JAPANESE YEN RESOURCES TRADING
– Written by DailyFX.com analyst Thomas Westwater
To contact Thomas, use the comments section below or @FxWestwaterTwitter