Japan's return from a holiday-induced long....>

FOREX: Japan's return from a holiday-induced long weekend did little to stir

regional FX dealing as the major USD pairs operated in a narrow range, with

little in terms of fundamental catalysts, and the impending Chinese LNY & US CPI

release casting a shadow over early dealing this week.

- Japanese PM Abe stated that he was yet to make a firm decision on who will be

the next BoJ Gov., although this did little to stir Yen traders. The JPY

continued to operate in a sideways manner as the BoJ's current Gov. Kuroda

reiterated his view that the BoJ's mon pol stance should remain extremely loose.

- For the Antipodeans, a positive NAB business survey failed to push the AUD

higher, as traders continued to focus on the US yield differential and cautious

comments from the RBA's Ellis. A wider than expected HY budget surplus out of

New Zealand was pretty much ignored.

- The PBoC set the USDCNY at 6.3247 (prev. 6.3001) as the PBoC skipped its

reverse repo operations for a 15th consecutive session, although it did inject

CNY393bln via 1-year MLF loans in front of the LNY.

- The EUR & GBP were also listless.