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South Korea's Import Price Growth Slows, USD/JPY Hits Six-Month Low
Developing
In Short: South Korea's import price growth slowed to 15.6% year-over-year in August, down from 18.7% previously, as traders await key central bank events and economic data.
Spot prices in South Korea remain within a trading range, close to a seven-month low, as central bank events loom on the horizon, according to FXStreet.
The 14-day RSI has retreated to the low-40s, indicating fading bullish momentum, which suggests that rallies may face selling pressure while prices remain capped below moving averages.
USD/JPY has reached six-month lows near 153.50 in the Asian session, driven by Japan's strong wage growth and Q2 GDP revision, which have bolstered bets on a BoJ rate hike next week.
China's August trade balance improved to $119.09 billion, up from $112.5 billion in July, but imports grew by 28.2% year-over-year, slightly above the previous month's 27.5% growth but below market expectations of 30% expansion.
What's still developing
- Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.
- The 14-day Relative Strength Index (RSI) has retreated toward the low-40s, hinting at fading bullish momentum rather than outright oversold conditions, which suggests rallies are likely to face selling pressure while price remains capped beneath these moving averages. (The technical analysis of this story was written with the help of an AI tool.
- However, imports rose by 28.2% year-over-year—a slight pickup from the previous month's 27.5% growth, but falling short of the 30% expansion expected by markets.
- The Greenback could regain its footing soon, however, as traders price in a greater than 60% probability of a Federal Reserve rate hike in September, bolstered by a stronger-than-expected August US labor report.
- Investors are now awaiting the upcoming US Producer Price Index and Consumer Price Index reports later this week to gauge the Fed's next policy move.
Sources
- Fxstreetlink