The Bank of Japan left its rates and QE programme unchanged, as expected by the market. The central bank upgraded its GDP forecasts slightly, but left the inflation forecasts unchanged. The Yen strengthened slightly after the announcement, with USD/JPY declining from 113.70 to 113.25. Following the break below 114, support is now seen at 113.00 and 112.50. To the topside, resistance is noted at 114.00/10 and 114.90/115.
Australian business confidence data improved, with the NAB index for December arriving at 6.0 vs. 5.0 expected. The Australian Dollar rose overnight, with AUD/USD up 0.15 % from 0.7550 to 0.7570. NZD/USD traded in a 0.7280-97 range.
EUR/USD recovered after bouncing off 1.0620 support in yesterday's NY session. Strong German inflation data helped the Euro recover and the focus today will be on the Euro Zone GDP and inflation numbers. Another solid CPI print could help the Euro take out the major resistance level at 1.0775.
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