Dec. 17 (Bloomberg) — The yen posted its biggest weekly
gain in six years against the dollar as signs of economic
recovery boosted speculation the Bank of Japan is moving closer
to ending its zero interest-rate policy.
Higher borrowing costs in Japan would erode the rate
advantage of dollar-denominated
The kiwi produced a second leg down last week to bring the total dropin the single currency up to 300 pips since the beginning of themonth. This week the calendar is relatively sparse but it does containtwo key releases – Current Account and the quarterly GDP reading.
The Australian dollar exhausted its nearly month long rally last weekafter reaching a six week high against the U.S. dollar. Looking to theeconomic calendar for this week, market moving indicators will bescattered among only a few days – possibly setting the single currencyup for strong moves.
Dec. 16 (Bloomberg) — The yen rose for a third straight
day, capping its biggest weekly gain in six years against the
dollar, on speculation the Bank of Japan is moving closer to
ending its zero interest-rate policy.
BOJ Governor Toshihiko Fukui told reporters in Tokyo today
The currency market witnessed a stunning turnround this week, with the dollar in the doldrums and Japan once more becoming the land of the rising yen.
The yenâ€™s sharp rally finally seemed to run out of steam as finance minister Sadakazu Tanigaki warned that Japan was closely monitoring the currencyâ€™s surge.
Dec. 16 (Bloomberg) — The yen headed for the biggest
weekly gain in six years against the dollar on speculation the
Bank of Japan is moving closer to ending its zero interest rate
Japan’s currency is poised for the largest weekly advance in
three months versus the euro
New Zealand dollar traders managed to get a break from the US dollar counterparts as the pair fell below the.6900 figure, but stalled after hitting the bids around .6869, a level established by the 23.6 Fib of the .7468-.6681 USD rally. A bounce from these levels will most likely see the pair head toward the .6965, a level marked by the 50-day SMA and with subsequent reversal once again head below the 6900 handle.
Canadian dollar continued to put up a struggle after the US dollar traders failed to push the pair above the 1.1600 handle. As greenback longs gear up of another advance, a move higher will most likely see the Loonie bulls give up the 1.1600 figure and retreat toward the 1.1686, a level established by October 12 daily low.
Australian dollar bulls managed to temporarily pause their descent after the pair landed on top of the support around .7456, a level marked by the 38.2 Fib of the .7798-.7267 USD rally, which is further reinforced by the combination of the 20-day SMA and 50-day SMA’s. A failure by the Aussie longs to stem the tide of the advancing greenback bulls will most likely see the pair collapse below the .7400 figure and test the bids around .7383, a level marked by the 23.6 Fib of the 7798-.7267 USD rally.