ForexLive Asia-Pacific FX news wrap: USD/JPY drops back from 156.00 | Forexlive


Federal Reserve speakers coming up on Monday include Mester and JeffersonChina to sell 20, 30 and 50 year Treasury bondsChina’s “weekend’s data add to the probability of a surprise rate cut”Australian April business confidence 1 (prior 1)Australia’s budget (due Tuesday) will assume inflation to return to 2 to 3% by end 2024PBOC sets USD/ CNY reference rate for today at 7.1030 (vs. estimate at 7.2284)Japan’s Kato says its natural that monetary policy will revert to positive interest ratesUSD/JPY sitting just below 156.00, Japan PM said on Friday he’s closely monitoring the yenUSD/JPY is back at last week’s high alreadyCredit in China fell in April for the first time since 2017 (or 2005)UK employers plan to increase wages by 4% in the next 12 months.BlackRock says the yen’s weakness is turning foreign investors away from Japanese stocksNew Zealand Food Price Index (April 2024) +0.6% (prior -0.5%)FT says UK PM Sunak is readying for an electionNew Zealand services PMI for April 47.1 (prior 47.5)China to switch off real-time info on foreign flows in stocks today, avert poor sentimentChina plans to issue special ultra-long term treasury bonds to raise 1 trillion yuanBig week coming up for Biden to slap huge tariffs on ChinaJP Morgan highlights USD/JPY at 160 as key for Bank of Japan interventionIraq’s muddled weekend comments on oil – deciphering continuesTrade ideas thread – Monday, 13 May, insightful charts, technical analysis, ideasMonday morning open levels – indicative forex prices – 13 May 2024Newsquawk Week Ahead: Highlights include US CPI, US Retail Sales, UK and Australian JobsWeekly Market Outlook (13-17 May)At some point this will be a problem for marketsIraq won’t agree to new oil production cuts, minister saysCanadian consumer spending strengthened broadly in April – RBCETH technical analysis and ETH price forecastChina’s April CPI +0.3% y/y (vs. +0.1% expected) and PPI -2.5% (expected -2.3%)Forexlive Americas FX news wrap 10 May: Markets react to lower sentiment/higher inflation

USD/JPY
approached, but didn’t get to, 156.00 during Tokyo morning trade
but saw a rapid drop. The fall was catalysed by JGB developments and by comments from Japan’s
LDP’s Kato, described as a “ruling party heavyweight”. He
is a former chief cabinet secretary and is seen by some analysts as a
candidate to become future prime minister. His remarks can be found
in the post linked above, but in short while he said Japan is not there
yet, it is seeing conditions fall in place for the central bank to
normalise monetary policy, including a return to positive rates.
Almost simultaneously news hit the Bank of Japan had trimmed its
purchases of 5-10 year Japanese Government Bonds (JGBs) at today’s
operation compared to the previous operation. The purchases still
fell within expected bounds, which cushioned the impact somewhat.
More on the JGBs in the Kato post linked above.

USD/JPY
dropped under 155.60 briefly before bouncing quickly back to around
155.90 and as I update has subsided to circa 155.75.

From
Australia today we had news drop that the government is going to assume
annual headline inflation is expected to ease to 3.5% by June and
2.75% by December 2024. This compares with the latest RBA forecast showing
inflation to remain at 3.8% cent until December before falling to
3.2% in June 2025 and 2.8% in December 2025.

AUD/USD
traded lower.

Also
from Australia today were some encouraging numbers for the Reserve
Bank of Australia from the National Australia Bank Business Survey
for April. This showed, amongst more, that employment growth is
slowing, forward orders for work are down, and pricing pressure is
generally easing back to lower rates.

Note
also in the points above we had data from China published over the
weekend, CPI inching higher while credit growth fell.



This article was originally published by a www.forexlive.com . Read the Original article here. .