Analysis and Recommendation: (close of Asian session)
USD/JPY is trading close to the open of 82.23, currently sitting at 82.19 after a crazy morning of trading. Investors anticipating the BoJ decision and statements pushed the Yen as high as 82.48 and as low as 81.97 but after a short time the markets leveled close to the open and have stayed within the channel.
Japan, like the rest of the world is awaiting the Fed decision and statements late Tuesday afternoon.
Overseas economies still have not emerged from a deceleration phase on the whole but some improvement has recently been observed in the U.S. economy and the sluggish European economy has stopped deteriorating, the central bank said. The BoJ kept key rates and also announced it would increase the amount of loans available through its growth supporting facility by 2 trillion yen ($24.35 billion)
Economic Data March 12-13, 2012 actual v. forecast
German WPI (MoM)
Italian GDP (QoQ)
German 6-Month Bubill Auction
OECD Composite Leading Indicators
3-Month Bill Auction
Federal Budget Balance
Tertiary Industry Activity Index (MoM)
RICS House Price Balance
Home Loans (MoM)
NAB Business Confidence
Upcoming Economic Events that effect the AUS, NZD and the JPY
00:30 AUD Westpac Consumer Sentiment 4.20%
The Westpac Consumer Sentiment Index measures the change in the level of consumer confidence in economic activity. On the index, a level above 100.0 indicates optimism; below indicates pessimism. The data is compiled from a survey of about 1,200 consumers which asks respondents to rate the relative level of past and future economic conditions.
00:50 JPY BSI Large Manufacturing Conditions 1.3 -6.1
The Business Sentiment Index (BSI) Large Manufacturing Conditions Index measures business sentiment in manufacturing. The data is derived from a survey of large Japanese manufacturers. It is a key indicator of the strength of the Japanese economy, which relies heavily on the manufacturing industry. A level above zero indicates improving conditions; a level below indicates worsening conditions. This survey may help to predict the Bank of Japan's Tankan Large Manufacturing Index which is generally released about a week later.
05:30 JPY Industrial Production (MoM) 2.1% 2.0%
Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
06:00 JPY BoJ Monthly Report
The Bank of Japan's (BoJ) monthly report contains the statistical data that policymakers evaluate when setting interest rates. The report also provides detailed analysis of current and future economic conditions from the bank's perspective
13:30 USD Current Account -114.0B -110.0B
The Current Account index measures the difference in value between exported and imported goods, services and interest payments during the reported month. The goods portion is the same as the monthly Trade Balance figure. Because foreigners must buy the domestic currency to pay for the nation's exports the data can have a sizable affect on the USD.
13:30 USD Import Price Index (MoM) 0.6% 0.3%
The Import Price Index measures the change in the price of imported goods and services purchased domestically.
15:00 USD Fed Chairman Bernanke Speaks
Federal Reserve Chairman Ben Bernanke (February 2006 - January 2014) is to speak. As head of the Fed, which controls short term interest rates, he has more influence over the U.S. dollar's value than any other person. Traders closely watch his speeches as they are often used to drop hints regarding future monetary policy
Government Bond Auction Schedule (this week)
Mar 14 10:10 Italy BTP/CCTeu auction
Mar 14 10:10 Sweden Auctions T-bills
Mar 14 10:30 Swiss Bond auction
Mar 14 15:30 Sweden Details nominal bond exchange auction on Mar 21
Mar 14 18:00 US Auctions 30Y Bonds
Mar 15 09:30 Spain Obligacion auction
Mar 15 09:50 France BTAN auction
Mar 15 10.30 UK Auctions 4.5% 2042 conventional Gilt
Mar 15 10:50 France OATi auction
Mar 15 16:00 US Announces auction of 10Y TIPS on Mar 22
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3