JPY Pressured on BoJ Speculation, AUD Outperforming

JPY was pressured through the Asian session today as BoJ matters were in focus.

• USD/JPY gapped higher at the open in thin liquidity as a Nikkei report noted BoJ Deputy Gov Amamiya being approached to head up the central bank. USD/JPY climbed as much as 1% before paring gains as Japan's Deputy Chief Cabinet Secretary Isozaki noted there was no truth to the Nikkei report. Finance Minister Suzuki earlier said he hasn’t heard such discussions, although he conceded that he is “out of the loop” on the matter.
• USD/JPY pared gains through the day to sit ~0.4% firmer at ¥131.65/70.
• AUD is the standout performer in G-10 space at the margins, despite weaker commodities (Iron Ore ~1% softer). AUD/USD firmed as Trade Minister Farrell noted he will travel to Beijing revealing a call with his counterpart struck an agreement for enhanced dialogue at all levels of government. A $17bn offer for miner Newcrest also potentially aided AUD at the margins.
• AUD/USD prints $0.6940/50, ~0.3% firmer today.
• NZD/USD was range bound for the majority of the session (onshore markets were closed for a local holdiay). The early bid in USD/JPY weighed, before support ahead of the 200-day EMA saw the pair par losses to last print $0.6330/35, little changed from opening levels.
• EUR and GBP are flat, having mostly observed tight ranges through the Asian session.
• Cross asset wise; e-minis are down ~0.3% and BBDXY is ~0.1% firmer. US 10 Year Treasury Yields are ~2bps firmer.
• Eurozone Retail Sales headlines an otherwise limited docket today.