Forex Forecast

Cyprus Debate Continues Media reports suggest the Cypriot government is currently redesigning how losses will be distributed amongst depositors in Cypriot banks,

Diet Confirms BoJ Nominees Doubts were finally put to rest over the identity of the incoming BoJ leadership overnight. The Upper House of Japan’s Diet confirmed all three government nominees – even Kikuo Iwata.

AU Jobs Firm, RBNZ Dovish AUDNZD was jolted over two big figures higher overnight after the RBNZ took a step towards the dovish end of the spectrum.

RBNZ Up Next Over the next 36 hours, three central banks are due to issue policy decisions, and Australian employment numbers are also due.

An Early BoJ Meeting? USDJPY broke to new multi-year highs overnight after a Nikkei newspaper article suggested an unscheduled BoJ policy meeting may happen “immediately after” the new leadership takes office on March 20th.

Another Fine Performance A mixed batch of Chinese economic data over the weekend led to some initial jitters for the Australian dollar at the Asia open, but risk appetite soon steadied again.

Payrolls Ahead USDJPY continued its advance overnight after finally breaking above 95.00 on Thursday. Rising US yields helped it on its way,

BoJ Hints At More The Bank of Japan made no changes to policy settings overnight, as widely expected. It was Governor Shirakawa’s last policy decision before his resignation takes effect on March 19th.

Australian GDP Satisfactory The Australian dollar continued its recovery overnight, briefly peeping above 1.03. Yesterday’s lack of action from the RBA helped steady nerves,

RBA Keeps Easing Bias The RBA left the policy rate on hold at a record low of 3.0%, very much inline with consensus opinion. However, the explicit easing bias was kept in place, triggered a 40-pip selloff in AUDUSD.

Wheeler Boosts NZD RBNZ Governor Wheeler revealed he intends to press ahead with the development of macro-prudential tools to help prevent house price bubbles and thereby secure financial stability.