Article Highlights

  • New Zealand NZIER business confidence index unchanged at 52
  • Japan’s current account deficit narrowed from 0.52T JPY to 0.04T JPY
  • Australia and Japan sign free trade agreement
  • BOJ to take dovish stance in today’s monetary policy statement?
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New York session traders showed no love for the dollar, as the U.S. currency ended in the red against its major forex counterparts. EUR/USD bounced to the 1.3750 minor psychological resistance while USD/JPY edged further below the 103.00 mark. GBP/USD had very minimal gains but managed to reach a high of 1.6625. There were no major reports released from the U.S. economy then.

The New Zealand dollar drew a bit of support from the NZIER business confidence index, which held steady at 52 and reflected optimism among businessmen. The Kiwi also got a small boost from comments by Finance Minister English, who said that the government is on track to reach its budget targets. Australia signed a new free trade agreement with Japan involving lower tariffs on beef imports, which could spur increased trade activity between the two nations.

Japan reported a narrower current account deficit of 0.04 trillion JPY from the previous 0.52 trillion JPY, but this barely affected yen movement as traders are biting their nails ahead of the BOJ monetary policy statement in today’s Asian trading session. Market watchers are expecting to hear dovish remarks or hints of further easing, as the Japan’s economic performance could slow down because of the recently implemented sales tax hike. Do stay on your toes during the actual event since it might spark a lot of volatility among yen pairs!

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