Abe brings tax increase back on agenda, JPY declines

Planned gradual increase
Japan's Prime Minister Shinzo Abe has brought the increase of sales tax back on the political agenda. Abe receives support from a panel of experts appointed by him. The Panel stated that a gradual increase from the current 5% to 10% not threaten the Japanese economy if this would be accompanied by economic measures. First, the tax should be raised to 8%, and in a further step till October 2015, to 10%.
As a result of the plans the yen fell against all its most-traded counterparts, as investors feared that despite economic accompanying measures, the Japanese economy gets back to falter. The USD/JPY is currently showing an increase of 0.43% at 98.85 and the EUR/JPY is currently recorded a Uwachs of 0.42% at 130.26. For the GBP Plus to the JPY is currently 0.83% at 153.41.

AUD rises after Chinese data
The Australian dollar in early trade could benefit from positive economic data from China. The ISM manufacturing index of the major trading partner of Australia rose to a 16-month high and can thus to improved exports from Australia close to China.
The AUD/USD gains currently 0.93% at 0.8986 and the AUD to EUR rose 0.93% currently at 1.4707. The strongest growth for the AUD was recorded, against the JPY.  At this he rose by 1.38% at a current rate of 88.58.

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