FX News - Mar 19 2014: JPN Posts Weak Trade Balance Data

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Japan posted disappointing Trade Balance figures for February today, although it did little to affect the USD/JPY pair. Its total merchandise trade balance came out at ¥-800.3 billion, which was significantly lower than the ¥-590.0 billion expected. Meanwhile, the adjusted merchandise trade balance came out at ¥-1,133.2 billion, which again was lower than the expected ¥-890.0 billion. Exports grew by 9.8% compared to the previous 12 months, but was lower than the projected 12.4%. On the flipside, however, imports grew by a better-than-expected 9.0% during the same period. Analysts’ expectations were at 7.4%.

With that, the USD/JPY pair continued to slide down in today’s Asian session. It opened at 101.47, and is currently trading at 101.32. Initial resistance for the pair is at 101.70, followed by 101.95. Meanwhile, initial support is at 101.01, followed by 100.76.

It has been a rough Asian session for the AUD/USD pair so far as it slid due to news from China. Yesterday the People’s Bank of China (PBOC) decided to fix the USD/CNY pair at 6.1351, leading to speculations of a further devaluation of the Yuan. This caused the AUD/USD to drop in value from opening at 0.9130 before bottoming out at 0.9109. It is currently trading at 0.91140, with initial resistance seen at 0.9170, followed by 0.9193. Meanwhile, initial support is at 0.9095, followed by 0.9072.

Today’s European and US sessions will be busy as these will be filled with key events from the United Kingdom and the United States. The UK will release the minutes of the BoC’s meeting, while the US will speak about its monetary policy and QE tapering.

The GBP/USD pair will certainly experience a lot of volatility later today. It is currently trading at 1.6586, with initial resistance seen at 1.6621, followed by 1.6663. Meanwhile, initial support is at 1.6517, followed by 1.6475.

By FX Strategy Team, Published on 19th of March 2014
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