JPY & AUD – Bank Of Japan Does Not Take Action

The JPY remained at the higher levels of its range against the USD on Monday and late last night (European time) the Bank of Japan once again showed that it refuses to take significant action. The BoJ announced that it would keep its monetary policy in place yet again, this should not have come as a surprise to investors who have seen ‘this show’ before. The AUD traded to the weaker side of its range and may continue to linger within a risk sentiment mode that is based on a mix of worries about the global economy and its own concerns at home regarding the upcoming election and interest rates that that could be hampering banking. Gold continues to be near 1200.00 USD per ounce and the broad commodity market must be given vigilance due to the recent scare caused by the Russian grain saga. However, trading in the Chicago grain markets has shown that fears may be subsiding as other export markets which produce wheat will likely be able to meet demand.

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