Economic Events: (GMT)

00:30     AUD       Building Approvals (MoM)                                         2.1%                      8.4%

Building Approvals (also known as Building Permits) measures the change in the number of new building approvals issued by the government. Building permits are key indicator of demand in the housing market. 

A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.                          

 00:30    AUD       Trade Balance                                                                 1.20B                     1.38B

The Trade Balance measures the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported.

A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.                           

 13:30    USD       Nonfarm Productivity (QoQ)                                      1.0%                      2.3%     

Nonfarm Productivity measures the annualized change in labor efficiency when producing goods and services, excluding the farming industry. Productivity and labor-related inflation are directly linked-a drop in a worker's productivity is equivalent to a rise in their wage.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.           

 13:30    USD       Initial Jobless Claims                                                    373K                      377K

 13:30    USD      Unit Labor Costs (QoQ)                                                  0.9%                      -2.5%                    

 13:30    USD      Continuing Jobless Claims                                          3565K                    3554K     

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. Continuing Jobless Claims measures the number of unemployed individuals who qualify for benefits under unemployment insurance.       

Unit Labor Costs measure the annualized change in the price businesses pay for labor, excluding the farming industry. It is a leading indicator of consumer inflation.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

15:00     USD      Fed Chairman Bernanke Testifies

Federal Reserve Chairman Ben Bernanke (February 2006 - January 2014) is to testify on the economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC. The testimony is in two parts; the first is a prepared statement, then the committee conducts a question and answer session. The Q&A portion of the testimony can see heavy market volatility for the duration.                                                      

USD/JPY

USD/JPY Fundamental Analysis Feb. 2 , 2012, Forecast

Analysis and Recommendation:  ( close of asian session )

USD/JPY was trading at 76.22 down from the high of 76.31 and lower then yesterday by .05

As the pair continue to drop it becomes more difficult on Japanese exports, and the more likely that we will see some Central Bank intervention. Todays economic reports, especially the jobs data could effect this pair and force a move by the BoJ.

Previous reports in the US showed that manufacturing activity in the Chicago area declined unexpectedly in January. The Chicago PMI declined to a seasonally adjusted 60.2, from a reading of 62.5 in December. Although this report only covers a small area of the US it is thought to be a key view of US manufacturing. Markets had forecast the PMI to rise to 63.0 in January.

In Europe today economic data was weak and disappointing, most reports met weak forecasts or fell below expectations, except for the bright spot an unexpected improvement in German Unemployment, dropping by 4000.

German Unemployment Change -34K; better than expected.

SNB currency reserves at CHF 257.5 bln for the end of December.

French Consumer Spending (Dec) -0.7%; worse than expected.

French Producer Prices (Dec) -0.1%, as expected.

Barclays raises their 6 month AUD/USD forecast from 1.0100 to 1.0500.

Swiss UBS consumption indicator (Dec) 0.92 vs 0.81 prior reading.

Scheduled Sovereign Bond Sales

Feb 01  15:30  Sweden  Details nominal bond auction on Feb 08

Feb 01  16:00  US

Announces details of 3Y Notes on Feb 07, 10Y Notes on Feb

08 & 30Y Bonds on Feb 09

Feb 02  09:50  France  OAT Auction

Feb 02  10.30  UK  Auctions 0.125% 2029

USD/JPY Pivot Points (Time Frame: 1 Day)
 

Name S3 S2 S1 Pivot R1 R2 R3

Classic
75.7320
75.9195
76.0510
76.2385
76.3700
76.5575
76.6890

Fibonacci
75.9195
76.0414
76.1166
76.2385
76.3604
76.4356
76.5575

Camarilla
76.0948
76.1240
76.1533
76.2385
76.2117
76.2410
76.2702

Woodie's
-
75.9055
76.0230
76.2245
76.3420
76.5435
-

DeMark's
-
-
76.3042
76.2056
75.9852
-
-