ForexLive Asia-Pacific FX news wrap: Yen lost ground | Forexlive

There
was no obvious fresh catalyst for the rise in USD/JPY during the
timezone here. From lows circa 130.80 its traded to highs just over
131.65 and is not far from the highs as I post. We had remarks
from Bank of Japan Governor Kuroda and new Deputy Governor Uchida,
but these came after the rise.

The
focus of the data agenda were CPI data from Australia. This was the
monthly CPI, for February, which came in below the estimate and below
the January and December month CPIs. It was suggestive of a peak for
inflation. The next quarterly CPI, which is a more reliable and
complete inflation data point, is due on April 29. We wait until then for
confirmation. For the Reserve Bank of Australia, which meets on April
4, the lower CPI for the month will be viewed as adding to the case
for a pause in the Bank’s rate hike cycle at this meeting. The Bank
said, clearly, in the minutes of its March meeting it was considering
a pause. I think they have enough to do just that at next week’s
meeting. The opposing viewpoint is that the Bank would be more
comfortable waiting for the more reliable quarterly data on April 29
and thus a hike next week and a pause in May.

AUD/USD
is down on the session by a few points after the data. NZD/USD is
higher with some cross buying noted.

Hong
Kong stocks rose strongly on the news that Jack Ma’s Alibaba will
be broken up into 6 separate firms, more in the bullets above.

Oil
held higher after a huge draw was reported in the private weekly
survey of inventory.

Asian
equity markets:

• Japan’s
  Nikkei 225 +0.39%

• China’s
  Shanghai Composite -0.2%

• Hong
  Kong’s Hang Seng +2.04%

• South
  Korea’s KOSPI -0.12%

• Australia’s
  S&P/ASX 200 +0.15%USD/JPY: