JPY Continues To Press Ahead

Tokyo trade saw decent demand for the yen, which resulted in further USD/JPY sales and a breach of support from Mar 13 low of Y104.51. A Japanese MoF official reiterated that the Ministry is watching FX markets with a "sense of urgency" and FinMin Aso echoed this messaging later in the day, adding that JPY appreciation doesn't correlate with trade balance shifts. A market contact suggested that the bulk of selling pressure in USD/JPY came via foreign accounts, while onshore accounts were reportedly flagging "huge" buying interest in the cross.

• Pressure on USD/JPY was amplified by broader USD weakness, as the region digested yesterday's worrying U.S. economic data. USD sales supported EUR, which outperformed all of its G10 peers, but JPY & SEK.
• Commodity FX traded on a softer footing. NZD was weighed on by local ANZ Consumer Confidence, as headline index edged lower suggesting that the recovery in sentiment has lost steam.
• USD/KRW showed at a new multi-month low, hit by a double-whammy of greenback weakness and above-forecast South Korean industrial output.
• Month-end flows were in focus overnight, with broader liquidity thinned by a market holiday in Singapore. Malaysia, Indonesia and the Philippines were also off for the Eid al-Adha holiday.
• U.S. personal income/spending, Chicago PMI & U. of Mich. Survey, as well as EZ & Canadian GDPs take focus from here.