Forex Flash: Yen remains weak and AUD/USD eyes upside – OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank sees that USDJPY and AUDUSD look to be experiencing some upside ahead.
Looking at USDJPY they note that the market's path of least resistance looks to be inherantly biased higher, with some consolidation expected on the approach of 92. In the interim, he is expecting base building behaviour to persist as dovish official Japanese rhetoric remains unabated.
Moving to AUDUSD, Ng comments that the Dec NAB business conditions/confidence readings on Tuesday lent partial support to the AUDUSD but the pair may find the topside tough going in the near term. He writes, "Note remarks from PM Gillard this morning highlighting the firm valuation of the AUD, implicitly putting the spotlight on RBA interest rate policy to shoulder the burden of adjustment."
Further, on other fronts, he notes that the RBNZ rate decision is also due late Wed and if the RBNZ remains on a slightly hawkish plane, look potentially for sustained heaviness in the AUDNZD. Overall, he is expecting the AUDUSD to attempt to range trade in the near term with the pair sitting astride the 55-day MA (1.0468) and with initial support expected at 1.0400.
Looking at USDJPY they note that the market's path of least resistance looks to be inherantly biased higher, with some consolidation expected on the approach of 92. In the interim, he is expecting base building behaviour to persist as dovish official Japanese rhetoric remains unabated.
Moving to AUDUSD, Ng comments that the Dec NAB business conditions/confidence readings on Tuesday lent partial support to the AUDUSD but the pair may find the topside tough going in the near term. He writes, "Note remarks from PM Gillard this morning highlighting the firm valuation of the AUD, implicitly putting the spotlight on RBA interest rate policy to shoulder the burden of adjustment."
Further, on other fronts, he notes that the RBNZ rate decision is also due late Wed and if the RBNZ remains on a slightly hawkish plane, look potentially for sustained heaviness in the AUDNZD. Overall, he is expecting the AUDUSD to attempt to range trade in the near term with the pair sitting astride the 55-day MA (1.0468) and with initial support expected at 1.0400.
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