This trading week (started on June 9th) the economic news and central bank decisions coming from the Asian-Pacific region will dominate the currency market. The list of major events includes the RBNZ and BoJ's decisions, Market Leader reports.
Monday's Asian session started form the revised Japanese GDP report and ended with Japan's consumer confidence index in May. The Japanese economy gained 6,7% y/y in Q1 2014. The initial report indicated 5,9%. Therefore, the revised figures turned out to be higher than the initial ones.
Consumer confidence improved in May. Still it was lower than expected. The index showed 45,1 in May against the expected value of 45,2. April’s figures are 41,6. It should be noted that all the values are still below the 50 level, which indicates relatively low consumer activity coupled with the fact that pessimists are currently prevailing among consumers.
China, the world's second-biggest economy, is going to release its own consumer price index along with the producer price index for May 2014. April's inflation figures came out negative (-0,1%), which created deflation risks in China. This is the lowest level in 18 months. The year-over-year rate of inflation in China is 2,4%. Economists expect 2,6% inflation this year. Australia will become the focus of attention on June 12th since ti is going to publish employment figures on that day. The forecasts are positive and indicating recovery. The Australian labor market is expected to have created 15 000 new jobs in May as opposed to 14 200 new jobs in April. The rate of unemployment may stay unchanged at 5,8%.
At the same time, the Reserve Bank of New Zealand is planning to hold a meeting later this week as well. After the meting is over, we will definitely see the Governor of the RBNZ commenting on the central banks' monetary policy. Market participants are waiting for the RBNZ to increase the interest rate futher up from 3,0% to 3,25%.
On Friday, June 13th, Japan is set to publish its production report. China is going to publish the same report coupled with May's retail sales figures.
The Bank of Japan will complete its 2-day meeting. Experts do not expect major changes in June.
USDJPY
According to the experts working for Masterforex-V Academy, the H4 chart of USDJPY shows us that the price is consolidating close to 102,5. The level of support is at 102, 10 – Friday' low. The level of resistance is at 102,78 – Wednesday's high.
A break above the local high will give way to 103,01 and higher up to 103,43.
A break below the local low will give way to 101,79 and further down to 101,42.
According to the Binary Option Department of Masterforex-V Academy, USDJPY is subject to the bearish bias. Therefore, it is worth selling put options on USDJPY. The lifetime of the option is 2-3 hours.
NZDUSD
Masterforex-V Academy analyzed the near-term prospects of NZDUSD. The bearish trend started from the high of 0,8779 was broken in the upward direction. At this point, the price is still moving above the MF sloping channel (marked red). The price is likely to hit the 0,8557 resistance. A break above it will give way to 0,8583 and higher.
Alternatively, the New Zealand Dollar is likely to go down if the price breaks below the MF sloping channel. In this case, we can see the price going down to 0,8404 and 0,8377.
AUDUSD
Masterforex-V Academy indicates a series of ascending local highs starting from 0,9202.
At the same time, the Aussie is trading close to the border of the descending MF sloping channel. Therefore, a break above the sloping line is likely at this point followed by a rally up to 0,9362 and further up to 0,9392.
Alternatively, the long-term downtrend may resume if the price goes below 0,9392. It will give way to 0,9280 and 0,9256.
According to the Binary Option Department of Masterforex-V Academy, it is better to go long after retracements when it comes to binary options. The lifetime of the option is 2-3 hours.
