Steady USD Trend, Suzuki Reiterates Kanda Comments On Yen FX

The BBDXY is little changed in the first part of Tuesday dealings. We were last near 1243.50. Overall, it has been a fairly muted start to G10 FX trading.

• USD/JPY sits unchanged, last in the 151.40/45 range. Earlier lows we are 151.31. Some yen support may have been evident from lower US cash Tsy yields, but there has been no follow through.
• We also had comments from FinMin Suzuki cross the wires a little while ago. They largely reiterated comments that Kanda made yesterday. The authorities will take appropriate moves against excessive FX moves and that FX moves should be stable and reflect fundamentals.
• Yen sentiment wasn't meaningfully shifted by the comments though. The Feb PPI in Japan printed as expected (2.1% y/y).
• AUD and NZD both sit a touch lower versus the USD. Earlier we had a consumer sentiment dip in Australia, but we remain off recent lows. AUD/USD was last near 0.6540, while NZD/USD is back under 0.6000, slightly underperforming the AUD and yen.
• Looking ahead there isn't much in the way of further Asia Pac risk events, although focus is again likely on the USD/CNY fixing in a little under an hour. We also have RBNZ Chief Economist Conway speaking later, although there will be no speaking notes published and the media will not be at the event.