- Japan’s all industries activity index down by 0.1% vs. expected 0.2% uptick
- Australian quarterly wage price index up by 0.7%
- BOJ Kuroda emphasizes pledge to end deflation
- U.K. claimant count change, BOE meeting minutes coming up
Risk appetite was still a bit shaky in today’s Asian trading session, as the comdolls made small rebounds while Asian equities chalked up losses. The Nikkei closed with a 0.52% loss after Japan’s all industries activity index showed a 0.1% decline instead of the expected 0.2% increase, prompting traders to speculate about further easing from the BOJ sooner or later. After all, BOJ Governor Kuroda emphasized in today’s testimony that the central bank is committed to ending deflation in Japan.
Meanwhile, the Australian dollar pared some of its recent losses when the quarterly wage price index showed a 0.7% uptick. This follows mixed results for the country’s leading index reports. Another factor that may have contributed to the rallies against the U.S. dollar in the past few hours is the news report on World Bank President Zoellick talking about a possible taper pause if the U.S. recovery stalls.
Up ahead, we have a slew of economic data that may have a huge impact on market sentiment. The U.K. is set to print its claimant count change and possibly show an 18.3K decline in joblessness, enough to keep the jobless rate steady at 7.1%. The BOE is also set to print the minutes of its latest policy meeting, which might contain a relatively hawkish assessment of the U.K. economy according to Forex Gump’s analysis.
Also lined up in today’s London session is Switzerland’s ZEW economic expectations index release and Germany’s 10-year bond auction so y’all better brace yourselves for more volatile price action. Good luck and good trading!
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