NEWS / Foreign Exchange

BOJ keeps rate at 0.50%

USD weakened in Asian trading overnight, after two days of rally based on strong employment figures.

Overnight News Bullets

• JN Eco Watchers Survey: Current (Mar), out at 50.8 vs. 49.2 prior.
• JN Eco Watchers Survey: Outlook (Mar), out at 51.3 vs. 52.1 prior.
• NZ NZIER Business Opinion Survey (1Q), out at -15 vs. 3 prior.
• AU AIG Perf of Construction Index (Mar), out at 51.1 vs. 51.7 prior.
• AU ANZ Job Advertisments MoM (Mar), out at 1.9% vs. 3.4% prior.
• AU NAB Business Confidence (Mar), out at 10 vs. 12 prior.
• AU NAB Business Conditions (Mar), out at 17 vs. 18 prior.
• JN BOJ Target Rate (Apr 10), unchanged from 0.50%.

Markets

• FX: EURUSD testing last week??™s highs JPY firmer on upcoming policy statement.
• Fixed Income: Bunds testing May support.
• Stocks: Sideways US session, Asia mixed O/N. Nikkei off by 0.45%.  
• Commodities: Copper souring due to Chinese demand

O/N Data Heat map:

Calendar

Today's Highlights:

This and Next Week??™s Highlights:

What's going on?

• The strong employment figures from the US lead to a USD rally in the last two trading days, but we saw another leg lower in Asian trading overnight.
• Precious metals are edging higher, despite some USD strength. Crude oil weak, but brent crude holding on (more Iran-related).
• The US economy looks very strong overall, but the labor market is also very tight and inflation has not come down. Still, the question is, how much impact the faltering housing market will have. Still unresolved??¦

FX