- Japan February unemployment dips slightly to 4.5%
- Japan February manufacturing PMI 51.1, up from 50.5 in January
- Japan February industrial output -1.2% MoM
- Japan core CPI +0.1% MoM
- Fed’s Plosser: Rate hike conceivable this year
- Australian private sector credit +0.4% MoM
- UK consumer confidence eases in February
- The Hang Seng index fell by 0.7% but most other regional Bourses were near flat
- Gold $1662/oz; Oil $103.50/bbl
Finally a busy session in Asia, at least for the first half, with heavy end-of-financial-year flows guaranteeing plenty of activity.
USD/JPY was the first main mover as it started to ease lower off opening levels near 82.50. There was plenty of talk in the market of Sovereign and possibly BOJ demand near 82.00 and also large stops below 81.90. A spate of economic data gave the market some reasons to buy Yen and chase the stops. A very large bid at 81.95 managed to halt the flow but stops below 81.90 were eventually triggered. The market didn’t spend long down there, as AUD/JPY demand around Fixing time turned the market around and USD/JPY shot back to 82.30 very quickly. Ranges: USD/JPY 81.82/82.50; EUR/JPY 109.00/87
AUD/USD was also busy with AUD/JPY flows and stop-loss hunts the main drivers. AUD/USD drifted lower in early trade as the market took the USD/JPY selling to signal another attack on the Yen crosses. Solid bids above 1.0360 soaked up the selling and the pair jumped sharply from 1.0370 to 1.0400 when AUD/JPY buying emerged. Trailing stops above 1.0410 were then also targeted before the momentum then died from the market. Ranges: 1.0362/1.0413
EUR/USD was also on a stop-loss hunt for most of the day. The market opened just below 1.3300 but there were already reports of stop-loss buy orders above 1.3310 and 1.3340; the market made it its goal to trigger these. Ranges: 1.3295/1.3359
Cable 1.5944/86; EUR/CHF 1.2050/55