Home Forex ForexLive Asia-Pacific FX news wrap: USD/JPY yen back under 148, renewed BOJ hike chatter

ForexLive Asia-Pacific FX news wrap: USD/JPY yen back under 148, renewed BOJ hike chatter

by admin

Inflation
data from New Zealand, for Q4 of 2023, kicked off the session here.
The headline results showed inflation falling as per consensus
expectations and faster than the Reserve Bank of New Zealand had
forecast in its most recent Monetary Policy Statement (MPS) (in November
2023). However, the data also showed that non-tradable inflation is
still running hot, above forecasts from both the market and the RBNZ.
(In summary, tradable inflation is primarily driven by international
factors and market conditions, whereas non-tradable inflation is
driven by domestic economic conditions and policies.) NZD/USD jumped
higher and as I post is still above pre-data levels.

USD/JPY
is down on the session. The yield on Japan’s
10-year Japanese
Government Bond is up
10bps (20yr
+12) as
rate-hike expectations are
revised up. Again. Data from Japan showed much-improved exports in December.

Other
major FX is mixed. EUR/ and GBP/USD are higher while AUD and CAD have
seen a little pressure.

The
focus for regional equities is still China. Reuters
carried a report citing two unnamed sources conveying information
that Chinese authorities ‘asked’ funds to restrict short selling
stock index futures.

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