26 Aug 2015
AUD/JPY bulls committing and testing 0.85 handle
FXStreet (Guatemala) - AUD/JPY is building a case for a recovery to 85.20 but is subject to heavy volatility while the bulls are reluctant to give up the mid point of the 84 handle as last defence ahead of recent lows at 81.98.
AUD/USD is under pressure on the hourly chart but in current trade, the greenback is feeling the pressure and under attack as markets get going in the Chinese arena and Chinese stocks are falling again after a stronger open.
In addition to PBOC injecting 150bn yuan via 7-day reverse repos yesterday, the PBoC cut the RRR by 50bps to 18.00% with additional cuts for individual sectors. The PBoC also cut the deposit rate by 25bps to 1.75% and lending interest rates by 25bps to 4.60%. They set the Yuan today at 6.4043.
Earlier in the session, RBA's Stevens was talking at the National Reform Summit and stressed the need for growth. He explained that, "Growth rates are not enough despite lower interest rates in any of our life times," and "Measures of consumer confidence are about average despite gloom in papers", as the key takes ways. It was a short speech given he is just there as an observer of the summit.
We will now turn to tomorrow's data and focus will be back on the Federal Reserve while US Durable goods will be monitored as well as hearing from Fed's Dudley for further clues to the FOMC's approach to the current uncertainty in Global economy while the Yen may benefit again in a risk off environment depending the US session performances.
AUD/USD is under pressure on the hourly chart but in current trade, the greenback is feeling the pressure and under attack as markets get going in the Chinese arena and Chinese stocks are falling again after a stronger open.
In addition to PBOC injecting 150bn yuan via 7-day reverse repos yesterday, the PBoC cut the RRR by 50bps to 18.00% with additional cuts for individual sectors. The PBoC also cut the deposit rate by 25bps to 1.75% and lending interest rates by 25bps to 4.60%. They set the Yuan today at 6.4043.
Earlier in the session, RBA's Stevens was talking at the National Reform Summit and stressed the need for growth. He explained that, "Growth rates are not enough despite lower interest rates in any of our life times," and "Measures of consumer confidence are about average despite gloom in papers", as the key takes ways. It was a short speech given he is just there as an observer of the summit.
We will now turn to tomorrow's data and focus will be back on the Federal Reserve while US Durable goods will be monitored as well as hearing from Fed's Dudley for further clues to the FOMC's approach to the current uncertainty in Global economy while the Yen may benefit again in a risk off environment depending the US session performances.