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Forex - Aussie rebounds off morning lows, yen weaker after Kuroda

Published 01/17/2016, 09:16 PM
Updated 01/17/2016, 09:18 PM
Aussie rebounds off morning lows
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Investing.com - The Aussie recovered in Asia on Monday in a relatively light regional data day and with U.S. markets closed for Martin Luther King Day.

AUD/USD traded at 0.6893, up 0.38%, recovering from lows not seen since 2009, while USD/JPY changed hands at 117.28, up 0.18%.

Ahead in Japan, industrial production for November likely fell 1.0% month-on-month.

Earlier, Bank of Japan Governor Haruhiko Kuroda Monday repeated the recent outlook that the domestic economy is likely to continue recovering moderately despite slowing growth in emerging economies.

He also repeated the BoJ will continue with aggressive easing as long as it is necessary to achieve and maintain its 2% inflation target, he said.

"The BOJ will continue to monitor both upside and downside risks to economic and inflation conditions, and make adjustments as appropriate," Kuroda said.

The BOJ will release its quarterly report on economic conditions in Japan's nine regions at 1400 JST (0500 GMT).

At the previous meeting in October, all of the nine regions left their assessments unchanged from three months earlier, saying the economy was recovering.

In the coming week, investors will be awaiting data on Chinese fourth quarter growth, amid concerns over the outlook for the world’s number two economy, while Friday’s data on euro zone private sector growth will also be in focus.

Investors will also be awaiting monetary policy announcements from the BoC and the European Central Bank.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.01% at 98.98.

Last week, the dollar fell against the yen and the euro on Friday as a combination of weak U.S. economic data and ongoing risk aversion stemming from a fresh drop in oil prices weighed.

Oil prices fell through the $30 a barrel level on Friday, pressured lower by expectations that Iran will resume exports as soon as international sanctions are lifted, amid a global supply glut.

Prices for industrial metals, such as copper and nickel also fell.

The renewed drop in oil and commodity prices sent global equity markets tumbling amid fears of a global economic slowdown.

The dollar also came under pressure after data showing that U.S. retail sales unexpectedly fell in December while U.S. industrial production also fell last month, down for the third consecutive month.

The Commerce Department said U.S. retail sales fell 0.1% in December, compared to expectations of a 0.1% increase. Separate reports showed that U.S. industrial output fell 0.4% last month, worse than forecasts of a 0.2% drop on lower energy costs, while U.S. producer prices were also down in December.

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