ForexLive Asia-Pacific FX news wrap: Hawkish RBA Statement forecasts higher inflation | Forexlive

• European Central Bank speakers Friday, 10 February 2023: Schnabel Q&A, de Cos speech
• BoE Chief Economist Pill is speaking on disinflation today, Friday, 10 February 2023.
• Bank of Japan Governor Kuroda says the benefits of easing are greater than side effects
• Ukraine – heavy shelling reported in Kharkiv
• Federal Reserve officials’ comments are just “part of the financial wallpaper”
• Japan MP says the government will present BOJ leadership nominees on February 14, 0200 GMT
• AUD traders: Early heads up for Reserve Bank of Australia Governor Lowe speaking next week
• China January CPI 2.1% y/y (expected 2.2%)
• PBOC sets USD/ CNY mid-point today at 6.7884 (vs. estimate at 6.7885)
• Japan PM Kishida will have surgery on Saturday
• RBA Statement revises forecasts for core inflation higher
• Bank of Japan Deputy Governor Amamiya (leadership contender) to appear in parliament today
• Japan Fin Min Suzuki: Japan’s fiscal situation severe, CPI not stable, sustainable at 2%
• Japan data – January PPI 0.0% m/m (unchanged vs. expected 0.3%)
• Mexico hiked its benchmark rate by 50bp, 25bp more than expected, after high CPI data
• ICYMI – ECB’s Nagel urges decisive policy action, reduce risk of unanchoring
• Citadel brokerage & trading will get wider access to mainland China’s stock, bond markets
• Federal Reserve terminal rate expected 5-5.25%, ECB 3.25% (Goldman Sachs forecast)
• New Zealand January Electronic Retail Card Spending +2.6% m/m (expected +1.9%)
• New Zealand manufacturing PMI for January 50.8 (prior 47.2)
• Trade ideas thread – Friday, 10 February 2023
• US stocks fail to hold gains
• Forexlive Americas FX news wrap: US dollar storms back as sentiment sours

As
I am
posting
this the US dollar is adding (small) to its Thursday US time gains. EUR, GBP,
AUD, NZD and CAD are all dribbling a little lower against the big
dollar.

USD/JPY has also moved a little higher. From Japan today
we’ve had January PPI come in unchanged m/m (0%) and remain
elevated on the y/y (9.5%). From the parliament we had news that names of
nominees for new Bank of Japan Governor and two Deputy Governors will
be presented on Tuesday 14 February. There doesn’t seem to be any
change to current Deputy Governor Amamiya being favourite for
Governor come Kuroda’s term finishing up on April 8.

From
Australia we had the most recent issue of the Reserve Bank of
Australia’s Statement on Monetary Policy (SoMP). Forecasts were
revised, see bullets above, notably for inflation continuing to gain
in H1 2023 before falling and for wages to rise. The Bank warned of further rate hikes
still to come.

From
China we had January CPI and PPI data. Inflation remains well under
control according to this official data release.

USD/JPY was more subdued today: