Summary:
BOJ's end to negative rates caused the yen's sharp fall. The Australian dollar slipped too, as local rates remained steady.
EBC Forex Snapshot, 19 Mar 2024
The yen fell sharply on Tuesday after the BOJ ended its negative interest rate policy in a highly anticipated decision, while the Australian dollar also slid after domestic rates were kept steady.
Governor Michele Bullock said more rate hikes cannot be ruled out but the risks to the outlook are “finely balanced.” Her comments implied the central bank did not consider a rate cut at the meeting.
GDP expanded just 0.2% in the last quarter. Excluding population growth, economic activity per person contracted 1% from a year earlier, the worst result outside the Covid pandemic period since the 1990s.
| Citi (as of 11 Mar) | HSBC (as of 18 Mar) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0695 | 1.1017 | 1.0794 | 1.098 |
| GBP/USD | 1.2503 | 1.2896 | 1.2593 | 1.2889 |
| USD/CHF | 0.8551 | 0.9000 | 0.8745 | 0.8909 |
| AUD/USD | 0.6443 | 0.6691 | 0.6468 | 0.6659 |
| USD/CAD | 1.3359 | 1.3607 | 1.3437 | 1.3625 |
| USD/JPY | 146.68 | 150.89 | 146.71 | 151.08 |
The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained unchanged.
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