Both the JPY and AUD continue to create fireworks as they trade near highs. The JPY has stubbornly clung to the highest parts of its long standing range (discounting the temporary move that the BoJ caused with their intervention a couple of weeks ago). The intervention has proven a short term nuisance for investors who have apparently shrugged off another attempt by the Japanese government to affect the JPY. The question is how the Bank of Japan will act now that the currency once again is nearing what are considered dangerous points for its export community. The AUD as pointed out yesterday did lose some value short term upon the Australian Central Bank’s decision not to change its interest rate, but the Gold price could not be discounted for too long. The precious metal is at record prices and its affect on the AUD continues to make the Australian currency strong.
Written by bforex.com