The Yen Is Underpressure Before the Elections - 14.12.2012
The Japanese yen fell to 9-months low on the last trading day before the parliamentary elections on December16th, where the Liberal Democratic Party calling for easing of monetary policy is expected to win to win, according to the estimates. The US dollar against the yen reached 83.95 today (see the chart), it needs to get a little higher to touch 20-month high at 84.17. Euro also shows a strong growth against the yen today, the pair rose to the highest level in the last 8 months at 109.97. The key event for the yen next week will be the BOJ meeting on December 19-20th.
USDJPY, daily chart
The growth for Australian, Canadian and New Zealand dollar vs. US dollar was a little arrested yesterday amid fears that the US currency depreciates too quickly. However, it is still traded around its recent local highs. Australian dollar hung above 1.0500, reaching 1.0584 on Wednesday (see the chart), and today the currency was supported with a strong data from China - Australia's largest trading partner. Preliminary activity index in the manufacturing sector (HSBC Flash Manufacturing PMI) rose to 50.9 in December (previous: 50.5).
AUDUSD, daily chart