Inflation Tests RBA Patience, Kuroda Calls Yen Moves "Somewhat Rapid"

The yen regained poise in quiet Asia-Pacific trade, with market closures in China, Hong Kong and Taiwan weighing on activity. The choir of Japan's top economic officials pointing to the importance of stability in FX markets was joined by BoJ Governor Kuroda, who called yen moves "somewhat rapid". The first clear indication of the BoJ's discomfort with the yen's recent downswing lent support to the Japanese currency, even as Kuroda-san reiterated that currency weakness is net positive for domestic economy.

• The RBA provided a hawkish surprise in its monetary policy decision, despite keeping the cash rate unchanged this time. The Monetary Board dropped the reference to "patience" in its interest rate outlook, setting the scene for future tightening. The Aussie dollar surged as participants scanned the statement, with the kiwi benefitting from its strength to some extent.
• AUD/USD crossed above key resistance from Oct 28 high of $0.7556, which helped cap gains on Monday. The rate surged as high as to $0.7604 before stabilising near the $0.7600 mark.
• AUD/NZD took out Mar 29 high of NZ$1.0885 on its way to NZ$1.0902, its best level in a year. The pair last operates just shy of the NZ$1.0900 figure.
• Trade data from the U.S. and Canada as well as a slew of services PMI readings from across the globe take focus from here, alongside comments from Fed's Williams, Brainard & Daly.