In Asia Pacific money market trading ahead of European markets opened on Tuesday earlier this week, the general US dollar still put pressure on Asia Pacific's major currencies especially to the yen and yuan, where the market sees the acceleration of elections in Japan making the atmosphere unfavorable.
USDJPY is temporarily at 111.84 which at the previous trading close at 111.55. For Australian currency, AUDUSD is temporarily at the 0.7974 level compared to previous trading close of 0.7955. For the Chinese currency, yuan, or USDCNY to temporarily move at the level of 6.5915 after this morning closed at the level of 6.5715.
Over the weekend, Prime Minister Shinzo Abe summoned the Japanese parliament to advance the election schedule that should be at the beginning of next year to next month, where Abe's larger legitimacy side in running his administration is the main reason for the election schedule being advanced.
Of course this makes the market a bit rowdy where mutual disbelief arises in the minds of yen investors, especially today there is no Japanese economic data that holds the yen's weakening toward its psychological level at 112 yen per US dollar. The situation of Korea does not heat up again so it does not appear nuance safe haven yen again.
But so far, the weakening yen is still categorized as normal only by staying above the ¥ 109 level and below the 112 ¥ level. Investors see that they are still worried about the condition of the US economy after the storms that have crossed the potential region of the US economy a little while ago so the US government needs hundreds of billions of dollars in recovering costs and it could dampen the growth rate of the US economy in the third quarter of the year this.
So far, the yen's condition has not moved too much in recent months, as Japan's own sector, especially Japan's industrial sector, wants the BoJ to keep its currency stable.
The Australian dollar itself managed to get out of pressure after Australia's central bank decided not to change interest rates, accompanied by improving data on Australian housing prices that indicate Australia's inflation is still rising.