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Forex news for Asia trading Tuesday 29 March 2016

  • Japan government "eyes >Y5 tln stimulus steps"
  • AUD higher - cross buyers, momentum cited
  • Groundhog day? USD/JPY higher again
  • PBOC sets USD/CNY central rate at 6.5060 (vs. Monday at 6.5232)
  • China SOE bond default - nasty news
  • Japan retail sales data for February: +0.5% y/y (expected +1.6%)
  • Japan eco min Ishihara: PM Abe will make appropriate sales tax decision
  • Japan data: Spending +1.2% y/y (expected -1.9%). Jobless rate 3.3% (expected 3.2%)
  • Westpac on the AUD data showing most bullish since April of 2013
  • China Beige Book: revenues steady, profits up, new employment down, capex slowing
  • Gundlach says April Fed rate hike 'inconceivable' after lower GDP forecasts
  • Australia press: "Australian credit cycle may have finally turned"
  • Oz fund manager says overvalued AUD to shake RBA confidence, force rate cut
  • Trade ideas thread - Tuesday 29 March 2016

Not a big move day in Asia, but a few notable nonetheless.

USD/JPY and some yen crosses traded higher. USD/JPY has been a mover in Asia of late and, while not large, it was up again.

AUD and NZD buying noted also, taking both to new highs (vs. overnight trade) - Japanese names were notable buyers and the yield attractiveness is still being cited as a catalyst.

GBP/USD and USD/CHF were little changed, and pretty much the same for EUR/USD. Perhaps we'll more action as Europe opens after the Easter break, but these were not where the (limited) action was in Asia today.

Gold drifted a few dollars lower while oil is little changed.

On the data front today we got a better reading for household spending in February (Japan), but on the other hand retail sales data was a miss.

Keep an eye out in coming hours for a potential economic stimulus announcement from the Japanese government.

Regional equities:

  • Nikkei -0.4% (It could have been worse, Tokyo stocks trading ex-div today)
  • Shanghai -0.9%
  • HK -0.29%
  • ASX -1.33%

Still to come:

  • Federal Reserve Chair Janet Yellen speech: Economic Outlook and Monetary Policy, (at the Economic Club of New York Luncheon). Preview here

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