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Yen Weakens But USD/JPY Still Well Below Suspected Pre-Intervention Levels

FOREX

Yen remains the focus point in the first part of Asia Pac trade on Thursday. We sit around session highs for USD/JPY in recent dealings, last near 155.90/95. This is around 0.85% weaker in yen terms versus end NY levels from Wednesday.

  • The BBDXY index is last around 1260, well off intra-session highs of 1267.75 from late in Asia Pac trade yesterday. US equity futures are firmer, Eminis up 0.45%, while Nasdaq futures are close to 0.55% higher. This is helping offset the weaker cash close from Wednesday. US yields are higher, but gains are less than 1bp at this stage.
  • Headlines from the BoJ minutes (March meeting) have crossed. Familiar tones are evident around rate hikes will not be rapid, this is not a shift to tightening and that financial conditions are expected to stay easy, have all crossed. The BoJ did note yen had deviated from its PPP level.
  • For USD/JPY, post FOMC highs were around 157.60, while late NY/early Asia Pc lows came in at 153.04 (on suspected BoJ intervention).
  • AUD/USD is relatively steady, last near 0.6525, while NZD/USD is down a touch last near 0.5920/25. The AUD/NZD cross is back to 1.1015/20, just off fresh highs back to June last year.
  • Still to come we have Aust trade and building approvals data. Note China markets are still closed, re-opening next Monday.
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Yen remains the focus point in the first part of Asia Pac trade on Thursday. We sit around session highs for USD/JPY in recent dealings, last near 155.90/95. This is around 0.85% weaker in yen terms versus end NY levels from Wednesday.

  • The BBDXY index is last around 1260, well off intra-session highs of 1267.75 from late in Asia Pac trade yesterday. US equity futures are firmer, Eminis up 0.45%, while Nasdaq futures are close to 0.55% higher. This is helping offset the weaker cash close from Wednesday. US yields are higher, but gains are less than 1bp at this stage.
  • Headlines from the BoJ minutes (March meeting) have crossed. Familiar tones are evident around rate hikes will not be rapid, this is not a shift to tightening and that financial conditions are expected to stay easy, have all crossed. The BoJ did note yen had deviated from its PPP level.
  • For USD/JPY, post FOMC highs were around 157.60, while late NY/early Asia Pc lows came in at 153.04 (on suspected BoJ intervention).
  • AUD/USD is relatively steady, last near 0.6525, while NZD/USD is down a touch last near 0.5920/25. The AUD/NZD cross is back to 1.1015/20, just off fresh highs back to June last year.
  • Still to come we have Aust trade and building approvals data. Note China markets are still closed, re-opening next Monday.