USD/JPY higher ahead of BoJ news The U.S. dollar traded higher against the Japanese yen during Thursday’s Asian session, rebounding off six-week lows, as traders await the outcome of the Bank of Japan’s two-day meeting that concludes later Thursday. In Asian trading Thursday, USD/JPY rose 0.29% to 96.63. The pair was likely to find support at 96.19, the low of June 19 and resistance at 97.80, the session high. Earlier Thursday, the Ministry of Finance said that Japan’s current account balance rose to JPY650 billion in July from JPY620 billion in June. Analysts expected a July reading of JPY730 billion. In a separate report, the Bank of Japan said that bank lending in the world’s third-largest economy rose 2% in the second-quarter after a first-quarter increase of 1.9%. Analysts expected a second-quarter increase of 1.9%. Not much is expected in the way of surprises from BoJ later Thursday because the central bank is already engaged in a massive monetary stimulus. One possible avenue BoJ has for depressing the yen is to quicken the pace of its asset-buying. While most traders do not BoJ to announce new stimulus efforts at this meeting, it is widely expected the central bank will do so sometime in the next months. Elsewhere, AUD/JPY rose 0.35% to 87.03 after the Australian Bureau of Statistics said that Australian employment change fell to a seasonally adjusted -10,200 in July from 9,300 in June. The June number was revised down from10,300. Analysts expected a July reading of 5,000. The unemployment rate in the world’s 12th-largest economy remained at 5.7% last month, better than the reading of 5.8% analysts expected. NZD/JPY fell 0.10% to 76.72.
Posted on: Thu, 08 Aug 2013 04:47:23 +0000
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