Three Central Bank Policies Exacerbate The Economic Slowdown, And The Australian Dollar / Dollar Plunged 300 Points.

Thursday (4) the Bank of Japan intervened in the foreign exchange market. The Bank of England maintained Easy Policy, Japan and the European Central Bank further expand the asset purchase plan, the three major central bank's monetary policy trend makes the market expect the global economy to further slow down, coupled with the European debt crisis concerns still exist, multiple negative attacks against market risk preferences, Australian dollar / dollar pressure drop over 300 basis points.

At present, the air force dominates the trend of the foreign exchange market, and the Australian dollar has fallen all the way. touch For a month and a month, the low point was 1.0424, which has fallen more than 300 basis points since yesterday's high 1.0752.

The Japanese Central Bank (BOJ) announced at noon on Thursday that the benchmark interest rate will remain unchanged at 0-0.1%, increasing the scale of asset purchases from 10 trillion to 15 trillion yen. Earlier, the market expects the Bank of Japan to increase the size of the purchase of 10 trillion yen assets.

Japan Central Bank The scale of assets purchase and guarantee market operation increased from 40 trillion yen to 50 trillion yen, and the guarantee market operation scale increased to 35 trillion yen.

Meanwhile, the Bank of England Monetary Policy Committee (MPC) announced interest rate resolutions on Thursday. The resolution announced that the interest rate would remain unchanged at 0.50%. At the same time, the Bank of England resolution remains quantitative easing scale unchanged at 200 billion pounds. The decision on interest rates and quantitative easing is in line with expectations.

Shortly after the announcement of interest rate decisions by the Bank of England, the European Central Bank also announced its interest rate resolution, as expected, to maintain the key interest rate 1.50% unchanged. In addition, the European Central Bank announced that the overnight interest rate would remain unchanged at 2.25% and the overnight interest rate remained unchanged at 0.75%.

Since then, at the press conference, Tyse, the governor of the European Central Bank, has said that the plan has ceased and the bond purchase plan is a continuous plan.

Jean-Claude Trichet, the European central bank governor, said it would take more steps to promote it. Mobility Measures will buy Irish and Spanish bonds in the short term, and temporarily do not plan to buy Italy and Spanish bonds, prompting further increases in Spanish and Italy yields on long-term treasury bonds, suggesting that the euro zone debt crisis may suck up two large economies in Italy and Spain.

Market analysts pointed out that the news of possible help from Italy and Spain has adverse effects on US exports. "This has actually played a role in smashing the myth that the United States can rely entirely on itself to achieve economic recovery. From a long-term perspective, we will be more prudent in monitoring the dynamics of Europe and emerging markets. "

Vassili Serebriakov, a foreign exchange strategist at Wells Fargo in New York, said. "The position of the European central bank means that the prospects for further tightening policies are limited, which should suppress the euro," he said.

Samarjit Shankar, managing director of New York's Mellon bank's global foreign exchange strategy in Boston, said: "our stock market, bond market and exchange rate index show that a large number of medium and long-term investment households seek refuge in the corresponding asset market, not only speculation has pushed up the Swiss franc and yen, suggesting that the risk appetite has been greatly weakened."

Although the Australian dollar has seen 6 consecutive days in recent days, some institutions believe that the Bank of Japan is expected to reduce intervention operations, and the Aussie dollar will rebound.

Richard Grace, CBA strategist at the Federal Bank of Australia, said the Australian dollar / dollar fell sharply as the Japanese Central Bank (BOJ) intervened in the yen to boost the dollar. But any drop in the exchange rate will be temporary.

Grace also said that with the US dollar / yen rising to the top of the 80 pass, the Bank of Japan is expected to reduce intervention operations, and the Aussie dollar will rebound later, and is likely to return to the 1.1000 level in the coming weeks.

The most important data today is the US non farm employment data. If the performance is not as good as expected, the market risk appetite will further pressure, Australian dollar or further low. Graphically, the low 1.0390 in June 28th has a certain supporting role. If this position is dropped, the Australian dollar / dollar will hit a new low in April.