7 Feb 2014
AUD/JPY volatility ahead?
FXStreet (Guatemala) - AUD/JPY is drifting to the downside on the Tokyo open after reaching a high of 91.65 previously.
Focussing on the Aussie, Sean Callow, analyst at Westpac Banking Corporation ABN said he expects the RBA to lift its forecast of annual core inflation in the year to June 2014 from 2.5% to 2.75%. “We do not expect that the annual rate to December 2014 will be lifted from 2-3%. A decision to lift that forecast to 2.5-3.0% would send an unnecessarily hawkish message to the market; certainly lift the AUD However, the US Jan employment report of course dominates the calendar ahead of the NY day ahead through USD/JPY and the Aussie. “Consensus is for the unemployment rate to hold at 6.7%, Westpac 6.8%. A weak reading could do quite a bit of damage to USD as it would mean Janet Yellen would be fronting Congress for her first semi-annual testimony on Tuesday, having to explain why the Fed is so committed to reducing QE when the jobs recovery seems to have stalled. The technical for the pair offer a neutral bias, the quiet before the storm perhaps?
Focussing on the Aussie, Sean Callow, analyst at Westpac Banking Corporation ABN said he expects the RBA to lift its forecast of annual core inflation in the year to June 2014 from 2.5% to 2.75%. “We do not expect that the annual rate to December 2014 will be lifted from 2-3%. A decision to lift that forecast to 2.5-3.0% would send an unnecessarily hawkish message to the market; certainly lift the AUD However, the US Jan employment report of course dominates the calendar ahead of the NY day ahead through USD/JPY and the Aussie. “Consensus is for the unemployment rate to hold at 6.7%, Westpac 6.8%. A weak reading could do quite a bit of damage to USD as it would mean Janet Yellen would be fronting Congress for her first semi-annual testimony on Tuesday, having to explain why the Fed is so committed to reducing QE when the jobs recovery seems to have stalled. The technical for the pair offer a neutral bias, the quiet before the storm perhaps?