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Fxwirepro: Buy Usd/jpy at Dips Around 120.95-121 With Sl Around 120.50 for the Tp of 121.75/122

USD/JPY has made a low of 120.64 and recovered till 121.72. It is currently trading at 121.07. Overall trend is weak as long as support 120.50 holds. On the downside any break below 120.50 confirms further weakness , a decline till 120/119.70 cannot be ruled out . The pair's minor resistance is around 121.20 and any break above targets 121.75/122.35. It is good to buy at dips around 120.95-121 with SL around 120.50 for the TP of 121.75/122

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Australian dollar tumbles despite higher crude prices

The Australian dollar dropped Monday although US crude oil ended almost 9% higher on lower domestic production estimate. US crude oil futures settled at $49.20 a barrel. The Aussie stood at 63.48 euro cents from Friday's 63.62 euro cents, and 71.17 US cents from 71.42 US cents.

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Australian dollar tumbles despite higher crude prices

The Australian dollar dropped Monday although US crude oil ended almost 9% higher on lower domestic production estimate. US crude oil futures settled at $49.20 a barrel. The Aussie stood at 63.48 euro cents from Friday's 63.62 euro cents, and 71.17 US cents from 71.42 US cents.

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Canadian dollar wipes out advances as oil prices slide

The Canadian dollar erased earlier gains Tuesday as crude prices slumped on worries about how the degenerating growth in China can affect the global economy. That made the oil price lose 8%. Prices had surged almost 25% over three sessions. The loonie stood at 75.63 US cents from Monday's 76.01 US cents. No one places much confidence on oil prices. It remains noisy “and there's still a lot of volatility,” said Amo Sahota, Director at Klarity FX. The currency jumped earlier as the Canadian economy constricted by 0.5% in the second quarter.

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US dollar leaps on volatile stock markets

The US dollar bounced Thursday as global investors scaled back on riskier equities, aggravated by China's devitalizing economy and its volatile stock markets. China's degenerating economy and woes about global growth pressed investors to cut bets in the euro and the Japanese yen. The greenback finished at $1.1210 per euro. Versus the Japanese yen, the dollar closed at ¥120.655. We believe additional easing is possible before the year ends. Such message should uphold sentiment, “which so far has been a drag on risky assets,” said strategists at Barclays. With China's markets shut for a national holiday, investors will now focus on the European Central Bank policy meeting today.

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Euro declines following ECB dovish stance

The euro held losses Friday after the European Central Bank retained its asset purchase program and implied the likelihood of prolonging the program. ECB President Mario Draghi said the central bank's bond-buying program may run beyond September 2016, and its extent and composition may be changed. Against the US dollar and the Japanese yen, the common currency closed at $1.1122 and ¥133.13. The stipulation the ECB's asset purchase program may be extended beyond September next year is escalating, “which should continue to weigh on euro and eurozone short-term swap rates,” said Elias Haddad, Senior Currency Strategist at Commonwealth Bank. The central bank cautioned growth would suffer from devitalizing momentum in emerging markets, specifically China and slumping oil prices could pull eurozone back into deflation in the next months.

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Moody's: Taiwanese Banks Resilient to Economic Slowdown

Moody's Investors Service says its stable outlook for Taiwan's banking system reflects its expectation that rated banks in Taiwan will maintain their steady credit profiles, despite an economic slowdown, and that they will continue to benefit from strong government support. "Although weak external conditions are leading to slower growth in industrial production and exports, the impact on Taiwanese banks' asset quality should be buffered by low interest rates and healthy corporate balance sheets," says Sonny Hsu, a Moody's Vice President and Senior Analyst. "We expect Taiwanese banks to report stable profitability over our outlook horizon, as higher margins from overseas lending will be partially offset by higher credit charges due to tightening regulatory provisioning requirements and slower economic growth," adds Hsu. Moody's analysis is contained in its just-published report "Banking System Outlook: Taiwan," which provides an overview of credit trends affecting the banking system in the next 12-18 months. Moody's baseline scenario assumes a material slowdown in Taiwan's real GDP growth to 1.5% in 2015 and 2.0% in 2016, from 3.8% in 2014, with weak exports being a key driver. This slowdown, coupled with low expected inflationary pressure, will argue for the central bank's monetary policy to stay accommodative for an extended period, even when the US Federal Reserve begins hiking interest rates. "While the more challenging operating environment will pressure banks' asset quality metrics, we expect the resultant impact to be mitigated by sound corporate financials, continued low interest rates, and a resilient labor market," says Hsu. Moody's report highlights that Taiwan's economic and financial linkages with China (Aa3 stable) are growing, with banks' total Mainland China exposures rising to 62% of total shareholder equity as of end-June 2015, from 50% as of end-September 2013. The banks' rising Mainland China lending will expose them to risks associated with the Chinese economy, including the current economic slowdown and the country's ongoing economic rebalancing. Nevertheless, regulatory caps on banks' Mainland China exposures to 100% of banks' common shareholders' equity limit the extent of such exposures. Meanwhile, Taiwanese banks will likely strengthen their capitalization as they raise fresh equity and maintain modest overall asset growth, although capitalization remains weak relative to regional peers. Some banks will face increasing capital pressure if their expansion, mostly overseas, continues to outpace that of their local peers. Moody's also expects the government's willingness and capacity to provide support in a stress situation to remain strong. The government has made no effort to introduce a statutory bank resolution regime that entails imposition of losses on creditors on a going-concern basis if a bank becomes non-viability. The stable outlook on Taiwan's banking system is consistent with the stable outlooks for seven out of 10 Moody's-rated banks in Taiwan. The system's asset-weighted average long-term bank deposit rating is A1, while the asset-weighted average standalone baseline credit assessment is baa2. The stable outlook is also consistent with Moody's outlook on Taiwan's Aa3 government bond rating.

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Moody's Lowers Asia Growth Forecasts on Slowing Exports, subdued Domestic Demand

Moody's Investors Service has adjusted downwards its GDP growth forecasts for many Asia Pacific (APAC) sovereigns, noting that subdued global growth, exacerbated by weaker demand from China, leads APAC growth lower. Nevertheless, APAC sovereign credit profiles are resilient to lower growth, because most other APAC sovereign credit indicators, such as government debt and balance of payments ratios, remain in line with Moody's assumptions, and within the range for each sovereign's peer group. Moody's conclusions are contained in its just-released report titled "Asia Pacific Sovereigns: Credit Profiles Resilient to Slowing Exports, Subdued Domestic Demand". The report describes the adjustments to each rated Asian sovereign's growth forecast, as well as the reasons behind Moody's lower growth expectations. It highlights that weak demand from China (Aa3 stable) has dampened the overall export outlook for the region, while softer commodity prices weigh on some sovereigns' export revenues, growth and fiscal balances. Moody's report says that domestic demand in most APAC countries is unlikely to offset the effect of slower global growth, partly because an anticipated investment boost from government infrastructure spending has not materialized in some cases. In addition, households are saving more of their income gains from lower energy costs than previously expected, despite monetary easing by central banks in the region. Market volatility and political risk are also weighing on confidence. Nonetheless, Moody's sees most APAC sovereign credit profiles as resilient to the ongoing slowdown in global growth. The report points out that growth in Asia is slowing from high levels, and is on average still stronger than most other regions. The risk of deflation at this point is minimal, while lower oil prices have supported current account and fiscal positions in many Asian countries; offsetting the risks from slower growth and external financial volatility. In addition, government debt-to-GDP levels are largely moderate in much of Asia -- except in India (Baa3 positive), Japan (A1 stable), Pakistan (B3 stable) and Sri Lanka (B1 stable) -- offering some space for fiscal stimulus. On capital account volatility, Moody's expects that the pressures on exchange rates and reserves in many Asian countries will continue, as international markets respond to slower emerging market growth, and potential US Federal Reserve action. Nevertheless, the negative sovereign credit implications of such pressures are limited by currency flexibility, and reserve levels that are significantly higher in Asia than during the late nineties.

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US dollar dives as Asian equities falter


The US dollar declined Tuesday as Asian equities waddled, favoring safe-haven assets including the Japanese yen. The Nikkei slid 1.7%, as Shanghai stocks dropped on weak Chinese import data. Trading was also subdued as US markets are shut for Labor Day holiday. The greenback stood at $1.1190 per euro and $1.5298 per British pound. Against the Japanese yen, the currency closed at ¥119.00. Looking at the USD/JPY, the pair has been affected by equities, specifically “the impact of Chinese shares on Japanese stocks," said Koji Fukaya, President at FPG Securities.

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Yen Little Changed After Japan Consumer Confidence Indexl

The Cabinet office released the Japan consumer confidence index for August at 1:00 am ET Wednesday. After the data, the yen changed little against its major rivals. As of 1:01 am ET, the yen was trading at 134.28 against the euro, 185.00 against the pound, 122.67 against the Swiss franc and 120.25 against the U.S. dollar.

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Canadian dollar rises as oil prices surge

The Canadian dollar climbed Thursday after oil prices escalate, but traders do not expect its surge to last as they assimilate whether the Federal Reserve will increase interest rates as early as next week. US crude ended at $45.92 a barrel. As the Bank of Canada retained rates yesterday, investors turn their attention to Fed's rate decision next week. The loonie finished at 75.60 US cents from Wednesday's 75.47 US cents. Whether a rate increase happens next week or later in the year, the currency may weaken as traders “favor the US dollar,” said Ken Wills, Head of Corporate Exchange North America at CanadianForex.

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Indian Rupee Rises To 2-day High Against U.S. Dollar

The Indian rupee strengthened against the U.S. dollar in the morning deals on Friday. Against the greenback, the rupee rose to a 2-day high of 66.2900 from yesterday's closing value of 66.3500. If the rupee extends its uptrend, it is likely to find resistance around the 65.60 area.

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BoJ Leaves Monetary Policy Unchanged

The Bank of Japan kept its massive stimulus unchanged on Tuesday as expected by economists. In a statement, the BoJ announced that the policy board headed by Governor Haruhiko Kuroda decided by an 8-1 majority vote to maintain its target of raising the monetary base at an annual pace of about JPY 80 trillion. The bank will conduct purchases in a flexible manner in accordance with financial market conditions. The bank also revealed that private consumption has been resilient and housing investment has been picking up against the background of steady improvement in the employment and income situation. The bank said that the annual rate of increase in consumer prices was flat. Inflation expectations appear to be rising on the whole from a somewhat longer-term perspective. The BoJ maintained its optimistic assessment of the economy by stating that the economy has continued to recover moderately as a trend.

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Mexico Leading Index Falls For Third Month: Conference Board

The leading index for Mexico, which measures the future economic activity, decreased for the third consecutive month in July, as majority of its components made negative contributions, figures from Conference Board showed Tuesday. The Conference Board leading economic index fell 1.6 percent in July, following a revised 0.7 percent decrease in June. Out of the six components, only one contributed positively to the index in July. The index declined by 1.9 percent between January and July 2015, but the contraction was not as deep as the decline of 5.5 percent over the previous six months. At the same time, the coincident index that reflects the current economic acticity rose 0.3 percent in July, the same rate of increase as in the previous month. Two of the three components gained during the month.

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Canadian dollar rises before Fed rate decision

The Canadian dollar climbed Tuesday as crude prices inched higher, but investors were mostly hesitant to make huge bets before the much-awaited Federal Reserve's rate decision. Market participants are split on whether the US central bank will raise interest rates or defer such a move until later in the year or 2016. The loonie finished at 75.49 US cents from Monday's 75.43 US cents. The risk from Fed's policy decision is just too important “to not pay attention to,” said Brad Schruder, Director of Foreign Exchange at BMO Capital Markets. Meanwhile, US crude ended at $44.59 a barrel, buoyed by higher gasoline prices and advances on Wall Street.

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Japan Has Y569.659 Billion Deficit In August

Japan had a merchandise trade deficit of 569.659 billion yen in August, the Ministry of Finance said on Thursday. That missed forecasts for a shortfall of 542.5 billion yen following the 268.4 billion yen deficit in July. Exports gained 3.1 percent on year, shy of forecasts for an increase of 4.4 percent and down from the 7.6 percent jump in the previous month. Imports dipped an annual 3.1 percent versus expectations for a fall of 2.5 percent following the 3.2 percent contraction a month earlier.

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British pound bolsters as UK wages hit fastest pace in 6 years

The British pound escalated Wednesday as official figures showed British wages picked up speed in more than six years. According to the Official for National Statistics, the average pay throughout the United Kingdom rose by 2.9%, the fastest pace since 2009. Sterling finished at 72.93 pence per euro. Against the US dollar, the pound stood at $1.5445. With inflation still stuck around zero and oil prices slumping, traders have scaled back into next year their expectations on the Bank of England's timing of interest rate hikes. BOE Governor Mark Carney banged his recent remarks China-ignited market turmoil should not change the central bank's supposition.

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BoJ Minutes: Modest Economic Recovery Remains On Track

The members of the Bank of Japan's monetary policy board felt that the country's economic recovery continued, minutes from the central bank's meeting on August 6 and 7 revealed on Friday. Private consumption was resilient and housing investment was also making progress, the board noted, while inflation expectations appear to be rising. "Quantitative and qualitative monetary easing has been exerting its intended effects, and the bank will continue with QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. It will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate," the minutes said. At the meeting, the BoJ decided to keep its monetary policy unchanged and also maintained its inflation and economic growth outlook. It also held its benchmark lending rate steady at 0 to 0.10 percent. By an 8-1 vote, the policy board decided to maintain its target of raising the monetary base at an annual pace of about JPY 80 trillion. Downside risks include commodity exporters and emerging markets, the bank said, as well as the pace of the economic recovery in the United States. "Risks to the outlook include developments in the emerging and commodity-exporting economies, the prospects regarding the debt problem and the momentum of economic activity and prices in Europe, and the pace of recovery in the U.S. economy," the minutes said. Inflation is likely to be about zero percent for the time being, due to the effects of the decline in energy prices. Core inflation was at meager 0.1 percent in June. Renewed fall in oil prices could weigh on inflation. Nonetheless, the bank aims to achieve its 2 percent inflation target by September next year. "With regard to the outlook, Japan's economy is expected to continue recovering moderately. The year-on-year rate of increase in the CPI is likely to be about 0 percent for the time being, due to the effects of the decline in energy prices," the minutes said.

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China Home Prices Rise In August

Home prices in majority of the Chinese cities increased in August, figures from the National Bureau of Statistics showed Friday. On a monthly basis, home prices climbed 35 out of 70 cities surveyed by the government. Prices declined in 26 cities but remained flat in 9 months. The biggest hike in prices was noted in Shenzhen, by 5.1 percent and the steepest decreases were seen in Dandong, Jining and Xiangyang, by 0.5 percent. Compared with the same month of the previous year, home prices fell 61 out of the 70 cities during August.

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Taiwan Jobless Rate Remains Stable In August

Taiwan's unemployment rate held steady in August, defying economists' expectations for an increase, figures from the Directorate General of Budget and Statistics, or DGBAS, showed Tuesday. The seasonally adjusted jobless rate came in at 3.74 percent in August, the same rate as in the previous month. Economists had expected the jobless rate to rise to 3.77 percent. In the corresponding month of the previous year, the unemployment rate was 3.93 percent. The number of unemployed people remained unchanged at 435,000 during August. A year ago, the jobless figure totaled 453,000. At the same time, the number of persons in employment increased to 11.21 million in August from 11.20 million a month ago. The labor force participation rate rose marginally to 58.65 percent in August from 58.64 percent in July. On an unadjusted basis, the unemployment rate climbed to 3.90 percent in August from 3.82 percent in the previous

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New Zealand Trade Deficit NZ$1.03 Billion In August

New Zealand posted a merchandise trade deficit of NZ$1.03 billion in August, Statistics New Zealand said on Thursday - representing 28 percent of exports. The headline figure missed forecasts for a shortfall of NZ$875 million following the NZ$649 million deficit in July. Exports were worth NZ$3.73 billion, down from NZ$4.20 billion in the previous month. On a yearly basis, exports climbed NZ$197 million or 5.6 percent. Beef exports continued to rise, up 46 percent on year (NZ$61 million) in August. The beef export season runs from 1 October to 30 September. "With one month to go in the 2014-15 beef export season, beef exports are at a new high of NZ$3 billion," international statistics senior manager Jason Attewell said. "So far this season, 404,000 tons of beef have been exported, and if we export at least 18,000 tons next month we'll surpass the peak 2003-04 season for quantity exported." The United States remains the top beef export destination this season, for both value and quantity. Beef export values to the U.S. have hit a record high of NZ$1.6 billion (up 64 percent) for the season to date, with quantities up 21 percent on year. Beef export values to China continued to increase, up 88 percent for the season to date, to NZ$394 million, with quantities up 52 percent on year. "International shortages, rising production, and a falling New Zealand dollar have contributed to this record beef season," Attewell said. Imports were worth NZ$4.77 billion, down from NZ$4.85 billion a month earlier. On a yearly basis, imports jumped 19.0 percent.

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Japan Producer Prices Climb 0.7% In August

Producer prices in Japan were up 0.7 percent on year in August, the Bank of Japan said on Friday. That topped expectations for an increase of 0.5 percent following the 0.6 percent gain in July. On a monthly basis, prices fell 0.2 percent after gaining 0.2 percent in the previous month. Among the individual components, prices for leasing, advertising and employment services were up, while communications and real estate prices were down.

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NZ Dollar Rises Against Majors

The New Zealand dollar strengthened against the other major currencies in the Asian session on Monday. The NZ dollar rose to near 3-week highs of 1.7491 against the euro and 1.0984 against the Australian dollar, from Friday's closing quotes of 1.7530 and 1.0990, respectively. Against the U.S. dollar, the kiwi advanced to a 10-day high of 0.6402 from last week's closing value of 0.6376. The kiwi edged up to 77.01 against the yen, from Friday's closing value of 76.93. If the kiwi extends its uptrend, it is likely to find resistance around 1.70 against the euro, 1.08 against the aussie, 0.65 against the greenback and 78.00 against the yen.

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Canadian dollar plummets on lower oil prices, market gloom

The Canadian dollar declined Monday as crude oil prices took a negative turn and an overall gloom over global growth ignited woes in markets. US crude prices ended at $44.43, partially affected by huge losses on Wall Street. Also, markets have been anxious over the condition of the Chinese economy along with other emerging markets. The loonie stood at 74.66 US cents from Friday's 75.10 US cents. Generally speaking, it is oil and risk appetite. Not a bunch of figures or information last weekend “really justifies the declines, but it's there and it's very troubling to asset markets,” said Greg Anderson, Global Head of Foreign Exchange Strategy at BMO Capital Markets. Traders will expect Canadian gross domestic product data for July due Wednesday.

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U.S. Dollar Drops Against Most Majors

The U.S. dollar weakened against most major currencies in the Asian session on Tuesday. The U.S. dollar fell to 5-day lows of 1.1264 against the euro and 0.9718 against the Swiss franc, from yesterday's closing quotes of 1.1244 and 0.9738, respectively.
Against the yen, the greenback dropped to a 5-day low of 119.56 from yesterday's closing value of 119.91.
If the greenback extends its downtrend, it is likely to find support around 1.14 against the euro, 0.96 against the franc and 118.00 against the yen.

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