USD/JPY: 'Japanese' is testing a record low
The American currency traded with moderate growth, having resumed positions at 144.00 within the upward trend, where USD/JPY had already tried to hold, but by the end of the day trading most of the gains were leveled.
The tough stance of the Japanese regulator on the need to continue maintaining an ultra loose monetary policy leaves the national currency under pressure, moreover the U.S. Federal Reserve has already commented on the continuation of the "hawkish" course in the issue of tightening monetary parameters to overcome the record inflation rate over the past forty years, given the risk of recession. Officials at the agency, according to preliminary estimates, will increase the interest rate by 0.75% as part of the summit this month. Market participants noted the stance of the Japanese financial authorities, voiced by the Minister of Finance, in which the government expressed concern over the sharp decline of the Japanese yen and reiterated its determination to make corrections in the trading platforms, if necessary. At the same time, the comments made by the government officials were unable to change the situation on the market and to hold the yen because of the active strengthening of the American currency.
- Resistance levels: 145.00, 146.00 and 147.00.
- Support levels: 143.68, 142.50, 141.50, 140.78.
AUD/USD: The Bears regain the upper hand
The currency of Australia is showing an active advantage of the "bearish" dynamics, the day before making an unsuccessful attempt to consolidate the growth of indicators.
AUD/USD was able to get a slight support due to the macroeconomic data in Australia. According to the statistics Australian GDP for Q2 rose from 0.7% in the previous period to 0.9% in the present period, against expectations of 1.0%. Service sector activity from the AiG for August rose to 53.3 points from 51.7 in the previous period, beating experts' forecasts. Meanwhile, the RBA announced an extension of its cyclical interest rate hike last week, adjusting the figure by 0.50% to a target of 2.35%. The cumulative change in value was 225 points since the beginning of May, a record since 1994. Meanwhile, analysts expect the rate of further correction to decline as expensive borrowing in the domestic market will provide an additional negative factor for households and industrial firms.
- Resistance levels: 0.6750, 0.6800, 0.6839, 0.6900.
- Support levels: 0.6700, 0.6650, 0.6600, 0.6550.
USD/TRY: the pair is trading within a limited price range
During the APAC trading session, USD/TRY traded slightly higher, testing the 18.200 level.
The day before the Turkish Finance Minister made a statement about the imminent success in overcoming the record-breaking inflation, while the country's macroeconomic indicators show only a steady strengthening of the consumer price index. Recall that only in the last month of the summer the annual growth rate of prices for goods and services accelerated to 80.21% from 79.6%, and the Turkish regulator continues to be under pressure from the position of the country's leader, Recep Erdogan, keeping a soft policy to reduce the key indicator before the start of the election campaign, which begins in June 2023 to give an additional incentive to strengthen the manufacturing sector and export volumes. According to TurkStat (Turkish Statistical Institute), household spending in Q2 increased by 22.5% y-o-y, exports rose by 16.4%.
- Resistance levels: 18.3000, 18.5000, 18.6500.
- Support levels: 18.1500, 18.0264, 17.8550, 17.7500.
EUR/USD: investors are waiting for the ECB's monetary policy decisions
The EUR/USD is holding at 0.9990 trying to recoup losses due to strong economic data.
According to the macroeconomic statistics Eurozone GDP managed to strengthen by 0,8% in the second quarter beating economists' expectations of 0.6% which became the driver of the annualized indicator of the EU economy that though reduced to 4.1% from the previous 5.4%, still managed to consolidate above the expected 3.9%, allowing the ECB to continue tightening monetary parameters without recession risks in the short term. Currently, experts forecast a 0.75% growth of the key index which would adjust the target to 1.25% from the current 0.50%, but preliminary estimates were made without yesterday's GDP publication allowing the regulator to increase the correction step up to 100.0 basis points at once.
- Resistance levels: 1.0070 and 1.0370.
- Support levels: 0.9862, 0.9650.