Forex Flash: Australia on of losers from BoJ action - BTMU

FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that Australia has been one of the losers from Japan’s efforts to devalue the yen with the trade-weighted Australian dollar rising to a new post float record high as investors intensify the search for yield.

He writes, “It is leading to a tightening in overall monetary conditions in Australia while the economy still remains weak. This was evident overnight in the Australian employment report for March which revealed that the unemployment rate jumped by 0.2 point to 5.6% reaching a new cyclical high. The rising Australian dollar and weakening labour market will likely pressure the RBA to resume monetary easing soon.”