U.s. Economic Data Pushing Jpy And Gold Higher And Dollar Lower
The dollar edged lower against the yen in nervous trading in Asia Thursday
, lurking near 15-year lows against the yen as weak U.S. economic data pointed to further monetary easing by the Fed, pushing Treasury yields lower.Declines in Treasury yields to levels near the "virtual-zero" zone of most JGBs has been seen as a key factor pushing down the dollar against a broad range of currencies.
Elsewhere, the euro briefly rose to its highest mark since May 14 against the yen due to knock-on effects from the strong Australian dollar, which got a boost from the nations better-than-expected jobs data. Australia's jobs market added 49,500 new positions in September, the government said earlier in the day.
Investors still think Japan's yen-selling intervention is possible, but they said the risk is decreasing for now because a meeting of financial ministers and central bankers from the Group of Seven industrialized nations will be held this weekend. Japanese intervention just before the meeting would raise difficult questions for Japanese authorities in trying to explain that they are not just pushing the yen lower to gain a trade advantage against other nations.
And even if Japan conducts yen-selling operations, investors are doubtful over how effective that will be because a lot of short-term-focused funds are trying to make profits on Japan's intervention.
Gold reached new record high on concerns that monetary easing is destabilizing currency markets. On Wednesday, a weak private-sector jobs number pushed the US dollar lower which also helped gold reaching a new high. Powerful uptrend is shown on the charts, with $45 up already since Monday, and the technical picture suggests that uptrend will not finish any time soon. More bulls to come!
A recent upward structure is very powerful, a clear personality of a third wave, which signals for even higher levels ahead. We anticipate a bullish price action towards the 14000 region as long as the prices trade above 1317. Any pull-back from the highs will be only a temporary, corrective move of a fourth wave as shown on the chart below.
Gold 4h chart:
What we do?! Our team makes daily updates for Eur/Usd, Gbp/Usd, Aud/Usd, Usd/Cad, Usd/Chf, Usd/Jpy, Oil, Gold, S/P Futures and Dollar Index. Members will also receive all 4 hour wave counts that are updated every day, before the European session gets underway plus the intra-day wave counts (less than 4 hour chart, such as 1 hour or 30 min chart) which are posted and updated during the European and U.S. trading sessions.
by: Grega Horvat