Asia Summary and Highlights 28 Mar
Japan chief cabinet secretary Hayashi won't rule out any option against excessive FX moves
BoJ Summary of Opinion Little Surprise
Asia Session
On Thursday Asia session, the FX market seems to be ready to observe the Easter holiday and was trading in confined ranges. We are hearing more jawboning from Japan chief cabinet secretary Hayashi saying he won't rule out any option against excessive FX moves. As we are hearing more and more jawboning from multiple officials, the likelihood of an actual intervention rises if USD/JPY remains stubbornly high. We also have the summary of opinion, which gives us no surprises but confirm BoJ is in no rush to further tightens. USD/JPY is trading 0.02% higher at 151.36.
While regional sentiment in Hong Kong and China is positive, U.S. and Japan equity indexes are in the red. U.S. Treasury yields are also higher across the curve. The March New Zealand consumer confidence has plunged to 86.4 from prior 94.5, which further drags sentiment in the Kiwi of more recession fear. NZD/USD slipped 0.21% to 0.5991, AUD/USD down 0.08% to 0.6529 while USD/CAD rose 0.07%. Else, EUR/USD is 0.05% and GBP/USD is down 0.07%.