ForexLive Asia-Pacific FX news wrap: Japan inflation info, while markets await Powell
With
heightened attention being paid to Bank of Japan policy and the
potential for a shift/tweak in the coming months, the data points of
focus today were the Tokyo inflation rates for December. Tokyo’s
inflation is seen as a guide
to the whole of Japan inflation
print which
will be released on Friday
January
20, local
Japan date (Thursday evening the 19th
GMT and US Eastern time).
Headline
and ‘core’ (excluding food) inflation came in at 4% y/y, while
the core-core (excluding food and energy and the closest to US core
CPI) came in at 2.7% All well above the Bank of Japan 2% target. As
they have been for many months now. The BOJ expects these numbers to
fall from around October this year. Or so they keep telling us.
USD/JPY
traded in a choppy fashion, as high as around 132.21 then to lows
touching circa 131.39. Its mid-range as I update.
Eyes
also on China where there was little fresh news (its still just the
middle of the day there, so stay tuned).
Major
FX was rangebound awaiting the Fed boss. Federal Reserve System Chair Powell is speaking
Tuesday at 9am New York time, 1400 GMT. Powell has been hawkish in
recent comments while past days have seen markets reprice a touch
more dovish. Ears will be open for what Powell has to say.
Regional
stocks were mixed and not a lot changed. Japan reopened after a holiday Monday, the Nikkei225 is +0.7%
Other Asian
equity markets:
-
China’s
Shanghai Composite -0.2% -
Hong
Kong’s Hang Seng -0.5% -
South
Korea’s KOSPI more or less unchanged at -0.03% -
Australia’s
S&P/ASX 200 -0.3%
Chop for USD/JPY:
