This morning, the Japanese yen remains on the back foot after heavy selling yesterday. Investors are nervous ahead of the weekend’s elections. Following recent shock populist results, investors are steeling themselves for an outside shock. The USD/JPY remains in an elevated position, with the AUD/JPY pushing higher. The latter is pushing higher after better than expected employment data this morning.
The dollar index itself has barely moved, showcasing how this morning’s moves are entirely being driven by the yen.
Dollar pairs are mixed, with the EUR/USD and AUD/USD nudging higher, while the GBP/USD remains flat and the NZD/USD suffers heavy losses.
Gold is also selling off for the fourth day in a row.
Coming up today, we have UK retail sales at 09.30.
This is followed by US unemployment claims at 13.30, with Philly Fed Manufacturing at the same time.
This morning, the AUD/JPY remains in a bullish position, aided by strong domestic and Chinese data. The long term trend remains in play, aided by the continued yen weakness.