ForexLive Asia-Pacific FX news wrap: Ranges subdued by widespread holidays in Asia

[Forex News]

• US inflation report coming up on Friday when markets will be closed - ranges to watch
• Federal Reserve Chair Powell speaks Friday, San Francisco Fed's Daly also
• China Vanke says its objective is to cut interest bearing debt by 100bn yuan in next 2 yrs
• Japan's industry minister says to extend fuel subsidies for a "certain period"
• Japan finance minister Suzuki says speculative moves may be behind JPY weakness
• PBOC sets USD/ CNY reference rate for today at 7.0950 (vs. estimate at 7.2259)
• USD/JPY update - lower (in a small range) after Suzuki's verbal intervention
• Japan finance minister Suzuki says rapid FX moves are undesirable, speculative moves seen
• Bank of Japan Deputy Governor Uchida will appear in parliament from 10am Tokyo time
• Japan February Retail Sales +4.6% y/y (vs. +3.0% expected)
• Japan data - February preliminary Industrial Production -0.1% m/m (expected +1.4%)
• Japan February unemployment rate 2.6% (expected 2.4%, prior 2.4% also)
• Tokyo area March inflation data: Headline 2.6% y/y (prior 2.6%)
• Analyst says the Bank of Japan is “very, very close” to intervening in JPY
• JP Morgan analyst warns on stock flash crash - " might come one day out of the blue"
• Japan's CEOs less upbeat on the economy, cautious ahead of wage hikes kicking in
• Forexlive Americas FX news wrap 28 Mar: The quarter comes to an end.Stocks, yields. USD up
• ICYMI: Japan PM Kishida says its appropriate for the BOJ to maintain easy monetary policy
• Economic calendar in Asia for Good Friday, 28 March 2024 - big day for Japanese inflation!
• Asia time zone holidays today - who's in and who's out on Good Friday 2024
• Trade ideas thread - Thursday, 28 March 2024, insightful charts, technical analysis, ideas

Coreconsumer price index (CPI) in Tokyo, used as an early indicator ofnationwide figures due in around three weeks, rose 2.4% in March froma year earlier, matching a median market estimate and slowingslightly from a 2.5% gain in February. The other core measure,referred to as core-core that excludes fresh food and energy costs,and is interpreted as a broader price trend indicator, also slowed,coming in at 2.9% in March from 3.1% in February. Despitethe slowing bothare still wellabove the Bankof Japan 2% target rate.

Separatedata on Japanese factory output showed afall vs therise expected.

Ifthere is encouragement to be taken from today’s Japan data it was foundin retail sales, these beat median forecasts and rose for a 24thconsecutive month. Putabove-target inflation together with better retail sales and the BOJstays on a tightening course, though its expected to be slow.

USD/JPYresponded by inching just a little higher. It had barely added 10 orso tics in more than hour when Japan’s finance minister Suzukiweighed in with regular verbal intervention. The rhetoricfrom Suzuki and other officials has been taken upto a moreforthright level. Suzuki today included mentions of:

• rapidFX moves
• speculative moves
• won't rule out any steps torespond to disorderly FX

USD/JPYbacked off from its earlier high.

Inother major FX moves were also subdued. We are heading towards thenext session with holidays in the UK and Europe. It’s a holidaytoday also in the US and Canada, although we have Powell speaking andinflation data released.

This article was written by Eamonn Sheridan at www.forexlive.com.

More...