Littlefish FX | Nov 13, 2014 04:43AM ET
Key Data Releases Today
1330GMT – CAD New Housing Price Index exp 1.7% v 1.5%
1330GMT – USD Continuing Claims exp 2349k v 2348k
1330GMT – USD Initial Jobless Claims 280k v 270k
Overview:
Speculation continues over the fate of the sales tax increases & snap elections in Japan. USD/JPY jumped 30 pips to print a high of 115.88 on a press report report citing a ruling LDP party official, stating PM Abe appears to have made a decision to call snap elections, informing his party base to be prepared for December polls. The Japan cabinet has now been forced to deny such rumours twice in the past week, hence we will likely have to wait for Abe to return from his extended trip abroad next Monday before we get any official confirmation on either.
Elsewhere, AUDUSD dropped 50 pips to a low of 0.8672 following RBA’s Assistant Governor Kent injected a threat of currency intervention into his remarks. He reiterated the most recent RBA position that AUD exchange rate is still too high relative to fundamentals, and that despite signs of improvement, labour market is subdued. Other comments were similarly dovish, noting non-mining investment recovery may not be as strong as those in the past, and that mining investment would fall further in the coming year, all leading up to the threat that “RBA has not ruled out intervention” as a policy option. Sensing overreaction to what essentially is common knowledge, AUD/USD later recovered back above 0.8700.
Later in the day, we get Canadian new housing price index and US jobless claims
EUR continues to test range lows.
CAD pull back continues to test support.
GBP strong rejection from range low retest.
JPY trades at highs on Abe Sales Tax postponement reports.
AUD testing range and trendline resistance.
Key Trades:
Analysis:
EUR/USD: Bearish to Neutral – No Change
USD/CAD: Bullish – No Change
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