Here are the key factors to keep in mind today for Gold trades:
- Bank of Japan Minutes: During the Asian morning session the Bank of Japan released minutes from its last policy meeting which took place on April 30th 2015. According to the released minutes voting members are concerned about consumer spending as well as the output gap while long-term inflation expectations remain uncertain. This resulted in fear that the risk to consumer prices remains to the downside or against what the Bank of Japan has hoped for. A growing number of members also remain skeptical that the consumer inflation target will not be reached as outlined by the Bank of Japan for its fiscal year of 2017. Initial estimates by the Bank of Japan called for the target to be reached in fiscal 2015 while many members now think it may be reached in the second-half of 2016. The Bank of Japan did not adjust its monetary policy since it added to its stimulus in October of 2014. The addition came as oil prices dropped which slowed down consumer prices away from its 2.0% inflation target.
- Australian Westpac Leading Index: The Australian economy picked up slightly according to the Westpac Leading Index which rose 0.1% in April as compared to March. Forex traders can compare this to the 0.3% contraction which was reported in the previous month.
- Australian Construction Work Done: The Australian construction sector slowed down more than economists have feared. Expectations called for a contraction of 1.4% during the first-quarter of this year, but the released data showed a contraction of 2.4%. Forex traders need to compare this to the downward revised contraction of 0.6% reported in the previous quarter.
- Chinese Industrial Profits: The industrial sector in China has performed strongly in April as annualized industrial profits rose by 2.6%. This was a very welcome development out of the Chinese economy which has been slowing down. The increase in industrial profits more than reversed the 0.4% contraction reported in March.
- Japanese Small Business Confidence: Economists expect small businesses grew slightly more confident in May with an increase in Small Business Confidence to 48.0. Forex traders can compare this to the 47.4 which was reported in April.
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