Yen Steady After BoJ Refrains From Additional Stimulus

Yen Steady After BoJ Refrains From Additional Stimulus


Thursday, the yen was rather unchanged by Bank of Japan's decision to refrain from adding additional stimulus but some positive data out of Asia-pacific region revigorated risk-sentiments to some extent.
While maintaining its view of the economy returning to moderate recovery path, the central bank retained its benchmark uncollateralized overnight call rate at 0-0.1 percent and the overall asset purchase program at JPY 70 trillion.
The central bank retained its assessment that the economy has started to pick up moderately and will return to a moderate recovery path as demand increases.
Solid employment data from Australia and cooling inflation from China generated some risk-sentiment. Chinese consumer price inflation fell to a 30-month low of 1.8 percent in July increased hopes for more policy easing to counter a slowdown in economic growth.
Australia's unemployment rate came in at a seasonally adjusted 5.2 percent in July, in line with expectations and down from the revised June reading of 5.3 percent.
Australia added 14,000 jobs in July to 11,512,600, beating forecasts for a gain of 10,000 jobs following the downwardly revised loss of 28,300 jobs in the previous month.
Meanwhile, China's industrial output growth moderated unexpectedly in July, rising 9.2 percent year-on-year, slower than 9.5 percent increase in the previous month. The rate of growth was expected to accelerate to 9.7 percent.
Japanese consumer sentiment deteriorated more than expected in July, falling to 39.7 from 40.4. The reading was forecast to ease to 40.
The yen steadied in a range of 78.55 and 78.30 against the dollar after the BoJ policy. The Japanese unit also traded in a similar fashion against its European peers, trading in ranges of 122.80 - 123.15 against the pound, 96.95 - 97.25 versus the euro and 80.70 - 81.0 against the Swiss franc.
The yen underperformed against most of the commodity dollars, hitting a fresh 3-month low of 83.32 against the Australian dollar and a 5-week low of 79.09 against the Canadian dollar. The New Zealand dollar-yen pair was trading in a broad range of 64.05 and 63.65 in most of post-BoJ trading hours.
Economic data from the New Zealand was mixed today, with the consumer confidence improving to 114.1 in August from 110.5 in July, while New Zealand's median house prices easing to N$11,000 in July after reaching a record high of NZ$ 372,000 in June.




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