Soft US economic data all but cements a Fed pause at their next meeting, helping to support AUD/USD ahead of today's RBA meeting (which has the potential to be live).
USD/JPY represents the amount of Japanese yen that can be purchased with one US dollar. At the time of the Breton Woods System the yen was fixed to the US dollar at 360JPY per 1USD, but the exchanged only lasted until the US abandoned the gold standard in 1971. Since then the yen has appreciated significantly against the US dollar. The yen is the third most traded currency in world, behind the US dollar and the euro.
Price drivers
The US dollar can be influenced by US labor market data – including the monthly non-farm payroll (NFP) results and the unemployment statistics – US GDP and inflation data, interest rates and the Fed.
The yen is also sometimes thought of as a safe-haven trade, and the currency is sometimes hit with repatriation flows during times of economic crisis. Also, domestic data has an impact on the price of JPY, especially Japan’s trade balance, inflation, employment and GDP data.
Distance shows the difference between the pivot point and bid rate. It is calculated by subtracting the ask rate from the pivot point rate.
Bid
Ask
Daily
HIGH
LOW
Close
R3
R2
R1
S1
S2
S3
Weekly
HIGH
LOW
Close
R3
R2
R1
S1
S2
S3
Monthly
HIGH
LOW
Close
R3
R2
R1
S1
S2
S3
Understanding Pivot Points
Pivot points are used by traders as a predictive indicator and denote levels of technical significance. When used in conjunction with other technical indicators such as support and resistance or Fibonacci, pivot points can...Read More
