Here are the key factors to keep in mind today for Australian Dollar trades:

• RBA Lowe’s Speech in Sydney: Philip Lowe, the Deputy Governor of the RBA, during his Speech in Sydney stated that lower interest rates have helped the Australian economy to reduce its dependence on the mining sector and that an increase in consumer spending and housing construction will lead to an increase in business investment. Ge did rule out a consumption boom fueled by an increase in debt. He further stated that the RBA tries to walk a fine line between promoting growth without inviting future problems. Future income prospects remain reduced while debt levels are already high. The biggest concern, he said, is the high Australian Dollar.
• Australian New Motor Vehicle Sales: The Australian consumer has scaled back on purchases of big ticket items such as new vehicles. New motor vehicle sales contracted by 1.5% in April monthly and posted an annualized increase of 2.8%. Forex traders can compare this to the upward revised monthly increase of 0.7% reported in March and the upward revised annualized increase of 4.6%.

Here are the key factors to keep in mind today for Japanese Yen trades:

• Japanese Machine Orders: The Japanese economy showed some strength in March as machine orders unexpectedly outperformed economists’ prediction. Machine orders rose 2.9% in March monthly and posted an annualized increase of 2.6%. Expectations called for a monthly increase of only 1.5% and an annualized contraction of 6.0%. Forex traders can compare this to February’s downward revised contraction of 1.4% monthly and annualized increase of 5.9%.
• Japanese Tertiary Industry Index: A very important report will be released later during today’s trading session which is expected to move the Japanese Yen. The Tertiary Industry Index is called for a 0.5% contraction in March as compared to February. Should expectations be confirmed it would follow a 0.3% increase which was reported in February. Given today’s surprise in machine orders the Tertiary Industry Index may surprise to the upside as well. Forex traders should expect the Japanese Yen to move after the release of this economic report.

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