FX News – December 3: JPY Weaker Vs USD, GBP; RBA Statement Up Next

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The USD/JPY pair continued to soar higher in today's trading after Japan released positive news earlier. Its Monetary Base for November was at 52.5% over a 12-month period, which came out higher than the projected 47.2%, and was also higher than the previous 45.8%. In addition, its Labor Cash Earnings in October was up by 0.1% for the past 12 months.

These news helped the pair maintain its level above the 103.00 area. It is currently trading at 103.08, with initial resistance seen at 103.51, followed by 103.77. Meanwhile, initial support is at 102.59, followed by 102.33.

While the GBP/JPY pair has been moving at a tight range of about 40 pips, it received a lift from the UK's positive Manufacturing PMI for November released yesterday. From the previous 56.5, it was up at 58.4, which was better than the initial expectation of 56.0.

From a low of 168.23 at the beginning of the Asian session, the pair spiked up again above the 168.60 area. It is currently trading at 168.65, with initial resistance seen at 169.16, followed by 169.58. Meanwhile, initial support is at 168.02, followed by 167.60.

Probably the highlight of today's trading will be the RBA interest rate decision. While many traders expect the RBA to maintain rates at 2.5%, their focus would likely be on the bank's statement with regards to the aussie. Time and again, the Reserve Bank said that the currency is overvalued and that it would not hesitate to intervene if necessary to reduce its current value.

The AUD/USD pair received a lift earlier today with the positive Retail Sales figure, which was up by 0.5% in November compared to the previous month. However, the pair was dragged down again, most likely by traders waiting for the RBA statement, which will be released about half an hour from now (3:30AM GMT).

The pair opened the Asian trading at 0.9114, but quickly sunk from there and is currently trading at 0.9089. Initial resistance for the pair is at 0.9138, followed by 0.9161. Meanwhile, initial support is at 0.9055, followed by 0.9032.

By FX Strategy Team, Published on 3rd of December 2013
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