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Forex - Japanese yen flat against dollar as BOJ review awaited

Posted: 3/10/2014 7:05:00 PM
Referenced Stocks: - - The Japanese yen was flat against the dollar in early Asian trade on Tuesday ahead of the latest monetary policy review announcement by the Bank of Japan.

USD/JPY traded at 103.29, up 0.02%, in morning action while in Australia, where NAB confidence data is due shortly, AUD/USD traded at 0.9024, up 0.04%.

The Bank of Japan's board meeting deliberations are due to be announced around 1230 Tokyo time (0330 GMT) with the central bank expected to stand pat as the economy appears on track toward a continued modest recovery and sustained 2% inflation. The BOJ has said that downside risks to overseas economies have eased.

BOJ Governor Haruhiko Kuroda is due to host a news conference to discuss the board's decision at 1530 (0630 GMT).

On Monday the dollar was down against the yen after data revealed the economy grew 0.2% in the final three months of 2013, missing market calls for a 0.3% reading.

On a year-over-year basis, the economy expanded by 0.7%, missing expectations for a 1.0% reading.

The numbers softened the yen earlier though demand from investors fleeing exposure to emerging markets gave the Japanese currency support.

Earlier in the Asian session, February money stock data is expected at 0850 (2350 GMT). Australia's February NAB readings of business confidence and business conditions are due at 1130 Sydney time (0030 GMT). The private survey is followed closely by the Reserve Bank of Australia to assess the prospects for a transition to consumer-led growth as a minining investment boom wanes.

Overnight, the dollar moved higher against most major currencies as markets continued to applaud Friday's better-than-expected February jobs report, while soft Chinese trade figures boosted the greenback as well.

Elsewhere, the euro saw some support on market views that the European Central Bank will hold off on stimulating the economy further.

Last week, the ECB left its benchmark interest rate unchanged at 0.5%, as recent data indicated moderate economic recovery was taking place in the euro zone.

Elsewhere in Europe, investor confidence in the euro zone for March rose to its highest level since April 2011, easing concerns over the outlook for the region's economy, data showed on Monday.

Market research group Sentix reported earlier that its index of investor confidence improved to 13.9 this month from a reading of 13.3 in February. Analysts were expecting the index to increase to 14.0 in March.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.01% at 79.88. offers an extensive set of professional tools for the financial markets.
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