BoJ's Historic Hike Fails to Lift Yen, RBA's Cautious Stance Weighs on Aussie
| Action Insight Daily Report 3-19-24 |
BoJ's Historic Hike Fails to Lift Yen, RBA's Cautious Stance Weighs on Aussie |
Yen declines broadly in a classic "sell-on-news" reaction following BoJ's landmark decision to exit its eight-year negative interest rate policy and announce its first rate hike in 17 years. Although the immediate economic impact of this move is considered minimal, its psychological and symbolic significance cannot be understated. This policy shift was largely anticipated by investors, as evidenced by Nikkei's stability post-announcement, which saw only brief initial buying before stabilizing. In parallel, Australian Dollar faces some downward pressure after RBA keeps interest rates on hold as widely expected. The statement left the possibility of further rate hikes open, yet some market participants interpreted the central bank's language as less hawkish than anticipated. The notion that RBA is "not ruling anything in or out" has led some to speculate that a rate cut could be the next course of action... |
USD/JPY Daily Outlook Daily Pivots: (S1) 148.93; (P) 149.13; (R1) 149.35; More... USD/JPY's rally from 146.47 continues today and intraday bias stays on the upside for retesting 150.87/89 key resistance. Decisive break there will confirm larger up trend resumption. Next near term target will be 61.8% projection of 140.25 to 150.87 from 146.47 at 153.03. On the downside, below 148.90 minor support will delay the bullish case and turn intraday bias neutral first. But outlook will now remain bullish as long as 146.47 support holds. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 03:30 | AUD | RBA Interest Rate Decision | 4.35% | 4.35% | 4.35% | | 03:36 | JPY | BoJ Interest Rate Decision | 0.10% | 0.00% | -0.10% | | 04:30 | AUD | RBA Press Conference | | 04:30 | JPY | Industrial Production M/M Jan F | -6.70% | -7.50% | -7.50% | | 07:00 | CHF | Trade Balance (CHF) Feb | 3.50B | 4.74B | | 08:00 | CHF | SECO Economic Forecasts | | 10:00 | EUR | Germany ZEW Economic Sentiment Mar | 21 | 19.9 | | 10:00 | EUR | Germany ZEW Current Situation Mar | -80 | -81.7 | | 10:00 | EUR | Eurozone ZEW Economic Sentiment Mar | 25.4 | 25 | | 12:30 | CAD | CPI M/M Feb | 0.60% | 0.00% | | 12:30 | CAD | CPI Y/Y Feb | 3.10% | 2.90% | | 12:30 | CAD | CPI Median Y/Y Feb | 3.40% | 3.30% | | 12:30 | CAD | CPI Trimmed Y/Y Feb | 3.50% | 3.40% | | 12:30 | CAD | CPI Common Y/Y Feb | 3.60% | 3.40% | | 12:30 | USD | Building Permits Feb | 1.50M | 1.47M | | 12:30 | USD | Housing Starts Feb | 1.43M | 1.33M |
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