Support
BoJ leaves rates unchanged, PCE rises
The USDJPY pair continued to rise above the 156 handle whilst Gold prices lacked direction post higher PCE
BoJ maintains rates and the yen slides to 156 against the dollar.
GBP/USD rises; AUD/USD climbs on strong inflation data
Currencies
The yen plunged after the BoJ left policy unchanged after historic hike in March. The USD/JPY claimed the 156.72.
Additionally, the yearly core CPI from Tokyo softened to 1.6% vs 2.2% expected and 2.4% in March, falling below the central banks 2% target.
The GBP/USD pair continued to rise for the 4th consecutive day, hovering near 1.2513.
The AUD/USD pair climbed by 0.5% to reach 0.6552, buoyed by robust Australian producer price index inflation figures. This data, combined with a stronger CPI reading earlier in the week, fueled expectations of prolonged higher interest rates in the country.
PCE
The US PCE rose 2.7% from its previous reading of 2.5% in February. While the monthly index stayed the same at 0.3%.
Gold’s initial reaction was a price drop to $2,340 before trading in a tight range near the $2,350. With next resistance level near $2365 and $2,371 and on the bearish side, a confirmation below the $2,300 could act as a key support level.
