Amidst yen strength, the Australian dollar and Canadian dollar have been weak due to a series of deteriorating economic indicators in various countries. During the London session, the Australian dollar and Canadian dollar continued to exhibit soft price movements. Today, a series of European non-manufacturing PMI data, including China’s Caixin Services PMI, Sweden, Spain, Italy, etc., showed signs of worsening. This indicates concerns about global economic downturn, causing currencies sensitive to economic conditions and risk sentiment to be sold off. As the London session progressed, the previously rising USD/JPY also turned downward, further contributing to yen strength. Along with the USD/JPY falling from around 144.70 to 144.20, the CAD/JPY dropped from the low 109 yen range to the mid-108 yen range, and the AUD/JPY declined from the high 96 yen range to just below 96 yen. The NZD/JPY also fell from the high 89 yen range to the low 89 yen range.
Canada’s consumer price index has also declined, adding to the selling pressure on the Canadian dollar. Additionally, there is still a lingering sense of caution regarding intervention in the Japanese yen, leading to a predominance of JPY buying today. Based on this, it would be appropriate to continue selling CAD/JPY as mentioned earlier.