8 Apr 2014
Asia Recap: BoJ stands pat, JPY crosses trade heavy
FXStreet (Bali) - The Asian session was dominated by the Bank of Japan monetary policy decision, which as expected, offered no surprises to the market.
The USD/JPY opened Asia at 103.10, and after an early sell-off to a new 7-day low at 102.75, mainly driven by a heavy Nikkei 225 (down more than 1.5% at one point), the pair managed to recover following the BoJ policy outcome, which also kept view on the economy unchanged. The central bank is patently holding back any hasty measures on further easing until it learns the impact that the sales tax hike will have in the economy, which suggests an additional 1 or 2 months to get more juicy headlines out of the Japanese central bank meetings. Bank of Japan Governor Kuroda’s news conference is scheduled at 0630GMT. As a reminder, this will be the first ‘no-embargo’ conference.
AUD/USD opened Asia at 0.9267, retaining a bid tone right from the get-go, posting its highest for the session at 0.9285 before consolidating. The NAB business confidence report disappointed the market, however, the pattern that we have consistently seen in Asia, that is, buying Aussie dips, occurred again, and after an initial dip to 0.9267 opening level, buyers were back adding upside pressure. Another headline giving the Aussie a boost today was one carried by Bloomberg, noting that Japanese bought net ¥118.2b of $A long-term debt in February ($A1.3b).
The NZD/USD also traded firmer, breaking above the sticky 0.8620/15 resistance to now set its sight on 0.8640/50, next key resistance ahead of a potential retest of 0.8690/.87 trend highs. Earlier on the session, the NZIER Business Confidence (QoQ) (Q1) came at 52% vs 52% last, keeping the high readings of late, although not having much of an impact on the Kiwi.
The rest of G10 currencies traded in small ranges as usual in Asia. One piece of news worth highlighting for te interest of Sterling traders though, was the release of the British Chambers of Commerce Q1 survey, which showed the strongest growth in services export sales and orders since survey started in 1989, another sign that the UK economy continues on a healthy recovery path, with a growing number of traders expecting the BoE to deliver rates hikes late this year or early next.
Main headlines in Asia
New Zealand NZIER Business Confidence (QoQ): 52% (1Q)
Corporates see upside risk for USDJPY - Nomura
Japan Current account surplus for Feb 612.7 billion yen vs 618.8 billion expected
Australia National Australia Bank's Business Confidence down to 4 in March from previous 7
BoJ keeps monetary policy steady
The USD/JPY opened Asia at 103.10, and after an early sell-off to a new 7-day low at 102.75, mainly driven by a heavy Nikkei 225 (down more than 1.5% at one point), the pair managed to recover following the BoJ policy outcome, which also kept view on the economy unchanged. The central bank is patently holding back any hasty measures on further easing until it learns the impact that the sales tax hike will have in the economy, which suggests an additional 1 or 2 months to get more juicy headlines out of the Japanese central bank meetings. Bank of Japan Governor Kuroda’s news conference is scheduled at 0630GMT. As a reminder, this will be the first ‘no-embargo’ conference.
AUD/USD opened Asia at 0.9267, retaining a bid tone right from the get-go, posting its highest for the session at 0.9285 before consolidating. The NAB business confidence report disappointed the market, however, the pattern that we have consistently seen in Asia, that is, buying Aussie dips, occurred again, and after an initial dip to 0.9267 opening level, buyers were back adding upside pressure. Another headline giving the Aussie a boost today was one carried by Bloomberg, noting that Japanese bought net ¥118.2b of $A long-term debt in February ($A1.3b).
The NZD/USD also traded firmer, breaking above the sticky 0.8620/15 resistance to now set its sight on 0.8640/50, next key resistance ahead of a potential retest of 0.8690/.87 trend highs. Earlier on the session, the NZIER Business Confidence (QoQ) (Q1) came at 52% vs 52% last, keeping the high readings of late, although not having much of an impact on the Kiwi.
The rest of G10 currencies traded in small ranges as usual in Asia. One piece of news worth highlighting for te interest of Sterling traders though, was the release of the British Chambers of Commerce Q1 survey, which showed the strongest growth in services export sales and orders since survey started in 1989, another sign that the UK economy continues on a healthy recovery path, with a growing number of traders expecting the BoE to deliver rates hikes late this year or early next.
Main headlines in Asia
New Zealand NZIER Business Confidence (QoQ): 52% (1Q)
Corporates see upside risk for USDJPY - Nomura
Japan Current account surplus for Feb 612.7 billion yen vs 618.8 billion expected
Australia National Australia Bank's Business Confidence down to 4 in March from previous 7
BoJ keeps monetary policy steady