WELLINGTON/SYDNEY: The Australian and New Zealand dollars marked time on Tuesday as the marked tensed for the outcome of a Bank of Japan meeting that just might deliver the aggressive policy needed to revive the world's third-largest economy.
* The Antipodeans steady on the yen after profit taking knocked them off four year highs hit on Friday. Markets have already factored in the BoJ at least topping up its asset-buying and lending programme by another 10 trillion yen and doubling its inflation target to 2 percent.
* The Aussie at 94.31 yen, from 94.22 in late local trading on Monday. The New Zealand dollar at 75.03 from 74.88 yen. The Antipodeans are up more than 20 percent on the yen each in just two months.
* The BoJ has said it will start Tuesday's meeting earlier than usual at 8 a.m. (2300 GMT). It has disappointed often before and should investors be less than convinced by the outcome of the current meeting then the yen could rally sharply.
* Any progress in reflating Japan's economy would be a boon for Australian trade as the country is it's second largest export market. It would also tend to support global growth, commodity prices and risk appetite.
* The BoJ is centre stage for markets, with activity and interest elsewhere dimmed by US markets being closed for a holiday.
* The Aussie unchanged at $1.0515, having traversed a tight $1.0504 to $1.0525 range overnight. Initial support seen at $1.0475/80, the 20-day moving average (MA), ahead of $1.0460, the 55-day MA. Resistance around $1.0540, the 200-hour moving average.
* The New Zealand dollar similarly range bound, sitting around $0.8360, having drifted as high as $0.8373 overnight. Kiwi remains well supported at $0.8325 with initial resistance around $0.8380.
* The Aussie and kiwi dollars hold close to the multi-month highs posted on Monday against the struggling pound which slid to A$1.5056, its weakest since August and to NZ$1.8921, its lowest in nearly a year.
* Sterling has come under pressure across the board after weaker-than-expected retail sales data at home on Friday combined with fears of a return to recession with GDP figures due out on Friday.
* No local data on either side of the Tasman today, with Australia's fourth quarter inflation on Wednesday the key event for local investors this week.
* New Zealand government bonds flat.
* Australian bond futures steady with the three-year contract unchanged at 97.240, and the 10-year contract just 0.005 points higher at 96.670.
Comments
Comments are closed.