The
focus of the session was on the March CPI report from Japan. Headline
and core inflation came in above 3% again. More in the bullets above.
The response from USD/JPY was muted. The yen did strengthen a little,
dragging USD/JPY down to lows circa 133.80 and yen crosses generally
lower also. The Bank of Japan meet next week and speculation is about
the place that new governor Ueda will strike quickly with a move to
reduce policy stimulation via abandoning YCC. Speculation is also
about the place that he will not! You’ll recall that deputy
governor Uchida has said the Bank will not be telegraphing monetary
policy moves ahead of meetings, leaving two-way speculation in the
market.

Elsewhere
in major forex rates moves have been small only, with a little
weakness against the USD for AUD, NZD and Cad while EUR and GBP are
very little change indeed.

Asian
equity markets:

  • Japan’s
    Nikkei 225 -0.07%

  • China’s
    Shanghai Composite -0.21%

  • Hong
    Kong’s Hang Seng -0.45%

  • South
    Korea’s KOSPI -0.7%

  • Australia’s
    S&P/ASX 200 -0.37%

USD/JPY and AUD/USD lower = lower AUD/JPY: