admin

Japan’s exports rose 3.9% yoy in March to JPY 9.85T, below the expected 4.5% yoy gain. Shipments to the US rose 3.1% yoy overall, boosted by strong gains in electronic parts (+35.8%), pharmaceuticals (+29.7%), and autos (+4.1%). However, this was offset by weakness in China, where exports fell -4.8% yoy. On the import side, inbound […]

The post Japan’s exports grow 3.9% yoy in March, imports up 2.0% yoy appeared first on Action Forex.

The yen declined against other G-10 and Asian currencies after reports confirmed that foreign exchange issues were not discussed in Wednesday’s U.S.-Japan tariff talks.

• Japan economy minister Akazawa says agreed to hold a 2nd meeting with US this month

This helped ease market worries that the Trump administration might target Japan’s currency policies.

Despite this relief, trade uncertainty remains elevated.

• Mizuho Securities said Japan is making “great progress” in negotiations, but the start of formal talks has heightened market sensitivity to a potential “deal or no deal” outcome, increasing volatility.

This article was written by Eamonn Sheridan at www.forexlive.com.

Earlier today we had the official CPI data from NZ:

• New Zealand Q1 CPI +2.5% y/y (expected +2.3%) & +0.9% q/q (expected +0.7%)

From the Reserve Bank of New Zealand now, its model falling below Q4 and under the top of its 3% band:

***

Reserve Bank of New Zealand’s sectoral factor model of inflation, its preferred measure.

• The model is based on the idea that inflation in each sector of the economy is influenced by a common set of underlying factors or “factors” such as changes in interest rates, exchange rates, and commodity prices.
• The model describes how inflation in each sector of the economy is affected by the underlying factors. Estimates are derived from data on past inflation rates and other relevant indicators and are used to generate forecasts for future inflation in each sector.
• The RBNZ sectoral factor model of inflation is particularly useful because it allows the central bank to identify the sources of inflationary pressures in different parts of the economy. For example, if inflation is rising rapidly in the housing sector, the RBNZ can use the model to determine whether this is due to changes in interest rates or other factors specific to the housing market. By understanding the sources of inflationary pressures, the RBNZ can adjust its monetary policy to target inflation effectively and achieve its inflation targets.

This article was written by Eamonn Sheridan at www.forexlive.com.

Key Highlights Gold started a fresh increase and traded to a new record high above $3,350. The current price on the 4-hour chart is still bullish above $3,250. EUR/USD is eyeing more gains above the 1.1420 resistance zone. WTI Crude Oil prices could start a recovery wave if there is a move above the $64.00 […]

The post Gold’s Record-Breaking Run—Trade Tensions Light the Fire appeared first on Action Forex.

Australia added 32.2k jobs in March, falling short of expectations for a 41.2k increase. The composition of gains was relatively balanced with 15k full-time and 17.2k part-time positions added. Unemployment rate ticked up slightly to 4.1% from 4.0%, coming in better than the expected 4.2%. The modest rise in the jobless rate was largely due […]

The post Australia jobs rise 32.2k in March, misses expectations appeared first on Action Forex.