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30 Apr 2013
Forex Flash: USD/JPY hampered by softer US data and yields - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the cooler than expected US March core PCE numbers and the consequent softening in US yields may continue to hamper USD/JPY upside in the near term.
As such, he continues to abstain from chasing USD/JPY upside at this juncture and will continue to adopt a buy-on-break posture. To reiterate, with inherent JPY weakness expected to be reduced in the short term, he sees that USD/JPY volatility may instead grow slightly more sensitive to US centric dollar prospects (i.e., look to US yields). In the interim, he expects initial support towards the 55-day MA (95.63). Moving to AUD/USD he notes that Australian March private sector credit numbers are due with markets looking for a slight improvement. He writes, “With global macro risks circulating, the 55-day MA (1.0348) may prove pivotal for the pair, with resistance expected into 1.0400 while support is seen on approach of 1.0200.”
As such, he continues to abstain from chasing USD/JPY upside at this juncture and will continue to adopt a buy-on-break posture. To reiterate, with inherent JPY weakness expected to be reduced in the short term, he sees that USD/JPY volatility may instead grow slightly more sensitive to US centric dollar prospects (i.e., look to US yields). In the interim, he expects initial support towards the 55-day MA (95.63). Moving to AUD/USD he notes that Australian March private sector credit numbers are due with markets looking for a slight improvement. He writes, “With global macro risks circulating, the 55-day MA (1.0348) may prove pivotal for the pair, with resistance expected into 1.0400 while support is seen on approach of 1.0200.”