ForexLive Asia-Pacific FX news wrap: USD mixed ahead of the much awaited January CPI data | Forexlive

US
January CPI data is due at 8.30am US Eastern time, 1330 GMT. There
are previews, and links to others, in the bullets above.

JP Morgan
have outlined scenarios as follows:

As
for Asia today it was mainly subdued in small sorts of ranges (yen
excepted!). NZD/USD had a quick drop on the release of Reserve Bank
of New Zealand inflation expectations data that showed lower is
expected ahead, in the key 2-year time horizon (see bullets above).

USD/JPY
lost ground through the session, back towards 132.00. Q4 GDP data was
released, a disappointment and food for thought for those who are
gung-ho on expecting an imminent Bank of Japan accommodation
reduction. The Bank of Japan expects the current level of inflation to
fall from around September / October unless there are sustainable
wage rises ahead, which seems unlikely, and the data today indicate
the economy will struggle if policy accommodation is wound back much
at all.

In
other data:

in
Australia the Westpac-Melbourne Institute Unemployment Expectations
index jumped 10.6% to 119.4 points in February, an 18 month-high
(higher index reads mean more consumers expect unemployment to rise)
also
in Australia, the weekly and monthly consumer sentiment surveys were
appallingly weak, the weekly dropped back to a level last seen at the
beginning of the pandemic
Australia
again, the NAB business survey showed conditions and confidence both
rose, and are sitting above long-run averages. There was little
reduction in inflation pressure shown in the results, purchase costs
growth picked up to 3.2% in quarterly terms (from 2.6%) while labour
costs growth rose to 2.7% (from 2.1%).

The
New Zealand government declared a National State of Emergency on
Tuesday before Cyclone Gabrielle hits in full.

Federal
Reserve System Vice Chair Lael Brainard looks set to make the jump to the White
House. Its expected she’ll be named as US President Biden’s top
economic adviser, replacing the departing Brian Deese as head of
Biden’s National Economic Council.

Asian
equity markets: