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Bearish Cycle Still In Play

AUSSIE-YEN: Risk-barometer AUD/JPY has climbed 80 pips and last deals at Y68.24,
pushed higher by high hopes of stimulus measures to be unveiled by U.S.
officials. Tsy Sec Mnuchin said earlier today that he holds daily conversations
with Fed Chair Powell on economic matters surrounding the Covid-19 outbreak,
adding that Pres Trump is "committed to using all tools for the economy." Trump
himself noted that he will announce supportive measures at a presser on Tuesday
& floated the idea of implementing payroll tax cuts. Australian gov't is also
expected to unveil its stimulus plan soon, with the Cabinet due to sign off on
the package today. PM Morrison warned that Covid-19 might take a larger toll on
Australia's economy than the Global Financial Crisis.
- Elsewhere, Japanese off'ls reiterated familiar message re: monitoring "nervous
moves" in FX markets "with urgency."
- The rate is hitting fresh session highs, with bulls targeting yesterday's peak
at Y69.18. A break here would see bulls hoping to fill yesterday's opening gap,
by taking out the Mar 6 low of Y69.58. Bears look for a pullback under the
Y68.00 mark/lower 2.0% Bollinger band at Y67.97.