JPY Trading Outlook (28-04-2014)

AUD/USD opened on the highs and finished on the lows in a NorAm session dominated by worries about Russia and China. EM/high beta currencies remain at risk with tensions high over the Ukraine ultimatum and the continued slide of the CNH. The conversation regarding the weakness in the Remnimbi has shifted from being a PBOC screw-turning to keep speculators honest to one where the markets are wondering if the Chinese are embarking on a plan to bail out their export sector. Flattening of DM yield curves to new lows would suggest that the bond markets are pricing in that probability and would leave the Oz and other at risk of some instability. .9300 capped the rally attempt for the 2nd day running and now serves as a short term pivot point.