HSBC provides insights into its expectations for the movements of the Japanese yen (JPY), Australian dollar (AUD), and New Zealand dollar (NZD) in the context of recent central bank decisions and other influencing factors.
JPY Stability: Following the Bank of Japan's (BoJ) recent policy adjustments, HSBC expects the JPY to remain relatively stable, not experiencing major swings in either direction.
AUD and NZD Predictions: Both the Australian and New Zealand dollars are believed to be caught in a tug-of-war situation. On one side, there's the potential for a less aggressive monetary policy stance from their respective central banks. On the other, there's optimism stemming from potential stimulus measures in China, a significant trading partner for both countries.
Range-Bound Movements: Overall, HSBC predicts that the JPY, AUD, and NZD will all stay within a particular range in the near term, not veering too far from their current positions.
In the wake of the BoJ's recent policy change, HSBC believes the JPY will find stability and not be subject to the volatility it saw post the tweak. Both the AUD and NZD, according to HSBC, are expected to be range-bound. Influencing these predictions are a potentially less aggressive stance from local central banks and anticipated economic stimulus from China.