Yen Volatile On Ueda Comments, Limited Ranges Elsewhere

Yen was volatile as BOJ Governor-Nominee Ueda appeared before the parliament, USD/JPY was dealt in ~100 pip range however Ueda was ultimately balanced in his commentary and the pair sits unchanged from yesterday's closed levels.

• USD/JPY prints at ¥134.65/70. As Ueda was speaking the JPY initially pressured before paring gains and firming in a volatile trade. Ultimately USD/JPY found support ahead of ¥134.00 and the pair firmed to sit at current levels.
• Kiwi marginally outperformed its G-10 peers, however there was little follow through on moves and NZD/USD continues to observe narrow ranges as it consolidates above $0.62. A large option expiry ($940mn) at $0.6250 may cap gains today. Early in the session RBNZ Assistant Gov Silk noted that there are still upside risks to inflation, the forecast terminal rate is not “set in stone” and all rate hike options are on the table for April meeting.
• AUD/USD is a touch firmer, last printing at $0.6810/15. Westpac lifted their terminal rate call to 4.1% from 3.85%, with 25bp hikes now seen in March, April and May.
• Weakness in CNH may also be capping gains in the Antipodeans. USD/CNH is ~0.4% firmer and dealing a touch below 6.94, onshore equities are lower as US-Sino tensions weigh.
• Elsewhere EUR and GBP are flat, with narrow ranges observed.
• Cross asset flows are mixed, US Equity Futures are a touch lower and BBDXY is marginally firmer. 10 Year US Treasury Yields are ~2bps lower.
• In Europe today GDP data from Germany provides the highlight. Further out we have a slew of U.S. data including personal income/spending, PCE deflator, U. of Mich consumer sentiment and new home sales. There are also a number of Fed speakers scheduled to cross.