ForexLive Asia FX news wrap: Yen slides further

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading for Wednesday 31 March 2021

USD/JPYwas bought over the Tokyo fix for a 30-odd point move up to high just over 110.70 - the final Tokyo fix for the year (Japanese fiscal year, that is). The move higher did not stop there, after an hour or so of consolidation the pair moved higher again, to highs just under 111 for the day (as I post). There was little of an obvious catalyst to prompt the move leaving us grasping at what was new during the session:

  • Japan's February industrial production posted the first drop in two months (following its sharp rebound in January) with global semiconductor shortages causing carmakers to trim output alongside supply chain complications after the February earthquake
  • COVID-19 restrictions are being prepared for Osaka, Japan's second-largest city
  • US yields edged higher on a little rebound after their drop on Tuesday US time

The US dollar was mixed elsewhere, higher against the CHF, lower against the AUD (not by much) and barely changed against other majors.

China's official PMIs for March were released today, with both manufacturing and non-manufacturing beating consensus estimates. Australian credit data showed lending for housing carrying on, and lending for business shrinking for the first time (y/y) in the month for just under a decade. Building approvals data out as well showed the pipeline of new housing to be constructed continues to grow.

Regional equities did not have a good day (Australia excluded):

  • Japan's Nikkei -0.7%, Topix -0.7%

  • China's Shanghai Composite -0.6%

  • Hong Kong's Hang Seng -0.2%

  • Australia's S&P/ASX 200 +1.5%

Forex news for Asia tradingfor Wednesday31March 2021

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose