With a week ahead full of key economic data, U.S. Dollar trade was generally slow with investors wary of taking aggressive positions. Global trade could also be relatively light given a number of holidays which will be celebrated in Asia on both Tuesday and Thursday though analysts say that this week could prove to be a break out for a number of currencies. Topping off the events of the week are monetary policy decisions by the Bank of Japan and the Federal Reserve.
As reported at 11:56 a.m. (JST) in Tokyo, the U.S. Dollar Index traded at 79.741 .DXY, remaining close to last week’s very tight range. The USD/JPY pair was trading at 102.17 Yen, toward the lower end of the range of 102.00 Yen and 102.80 Yen. The EUR/JPY was also range-bound, trading at 141.40 Yen, near midway in a range which spanned from 141.00 Yen to 142.00 Yen. Unexpected inflation data resulted in the Aussie Dollar shedding 0.7% last week; the AUD/USD traded at $0.9274, with good support at the $0.9250 level.
Key Events to Watch For
Ahead, investors will look to the Fed decision to be announced on April 30th at the conclusion of a 2-day policy meeting; analysts expect that the central bank will continue to taper its quantitative easing plans in light of recent economic data. At the other end of the spectrum, the Bank of Japan is likely to hold the status quo on its monetary policy, keeping open the door for the possibility of additional easing. The week’s data will be capped off by the non-farms payroll report from the U.S. Department of Labor with investors hopeful that it will show a clear improvement in numbers after a harsh winter; a downside surprise could have eventual repercussions for Fed policy, however.