Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Forex - Yen rebounds in Asia as BoJ in focus, Aussie down on jobs

ForexSep 14, 2016 09:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Yen rebounds on BoJ views

Investing.com - The yen rebounded in Asia on Thursday as the Bank of Japan's monetary policy meeting next week took center stage with speculation about possible policy steps swirling, including a focus on negative rates over asset purchases, while the Aussie dipped on jobs data.

Jobs data from Australia showed a surprise drop of 3,900 jobs in August for the employment change figures, compared to an expected 15,000 increase. Still, the unemployment rate dipped to 5.6%, below the 5.7% figure seen as the participation rate eased to 64.7% from 64.9%. The data highlights spare capacity in the economy which the Reserve Bank of Australia has noted puts downward pressure on wages - wage growth is key for the inflation outlook to return at least to the bottom of the target band by the end of the RBA's forecast period.

USD/JPY changed hands at 102.14, down 0.28%, while AUD/USD traded at 0.7462, down 0.12%.

The Bank of Japan's September 21 decision was bumped up a notch in market eyes on a report Wednesday suggesting a further move on negative interest rates could be announced on the same day the Federal Reserve decision on a rate hike takes place, possibly producing spillover effects.

At stake is whether BoJ Governor Haruhiko Kuroda will announce steps that stem from a review of monetary policy called for at the last meeting, which some analysts say stem from intense pressure by Prime Minister Shinzo Abe to get a clearer handle on effective policy options. Goldman Sachs (NYSE:GS) expects the BoJ "to maintain its current policy framework at next week's meeting and rather use the comprehensive assessment to increase the visibility of future policy direction."

Earlier, in New Zealand, second quarter GDP rose 0.9% quarter-on-quarter, weaker than the 1.1% gain seen and a a 3.6% pace year-on-year against a 3.7% rise expected. The RBNZ has forecast 0.8% growth in GDP for the quarter and 3.3% year on year, so the outcome on both is higher than its projection. The Reserve Bank's next official cash rate review is on September 22 and its outlook
is for further easing.

NZD/USD traded at 0.7274, down 0.11% after the data.

In Australia, MI inflation expectations came in at 3.3%, compared with a previous reading of 3.5%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.05% to 95.28.

Overnight, the yen backed away from one-week lows against the dollar on Wednesday amid doubts that possible further easing by the Bank of Japan would cause a significant downside for the currency.
The dollar was steady against the other major currencies as uncertainty over the timing of the next Federal Reserve rate hike continued.

Fed Governor Lael Brainard said on Monday that the case to tighten monetary policy in the coming months is less compelling. The comments dampened expectations for a rate hike at the Fed’s next meeting which is scheduled for September 20-21. Investing.com's Fed Rate Monitor Tool showed a 15% chance of a rate hike next week.

Expectations of higher interest rates typically boost the dollar by making it more attractive to yield seeking investors.

Forex - Yen rebounds in Asia as BoJ in focus, Aussie down on jobs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email