ForexLive Asia FX news: AUD slides a bit more, budget to come later

Tuesday, 09/05/2017 | 03:41 GMT

Forex news for Asia trading Tuesday 9 May 2017

RBNZ meeting this week - no change is expected - preview 6
Australian retails sales data - Westpac response
RBNZ meeting this week - no change is expected - preview 5
Bloomberg: Chinese Stocks Head for Longest Losing Streak in Three Years
Australian budget preview 4
RBNZ meeting this week - no change is expected - preview 4
Moody's says the BOJ is becoming the main source of affordable funds for govmt
Goldman Sachs says growth in China demand for industrial metals likely to be muted
Australian budget preview 3
Japan earthquake: M6.4 near Okinawa
Australian budget preview 2
UBS Chair Weber: Brexit to bring more volatility to Europe
Australia (March) Retail Sales: -0.1% m/m (expected +0.3%)
PBOC sets USD/CNY mid-point today at 6.9037 (vs. yesterday at 6.8947)
IMF on Asia-Pacific, "significant uncertainty"
Australian retail sales due 0130GMT - Goldman Sachs preview
More on the Japan wages data "to chill spending"
BOJ's Kuroda: Aggressive monetary easing still necessary
Japan - Labour cash earnings (March): -0.4% y/y (expected +0.5%)
He's back. Kuroda to appear in Japanese parliament today.
Australia - ANZ / Roy Morgan Weekly Consumer Confidence 112.3 (prior 111.3)
China press - Trade deficit in 2017? & SAFE wants the yuan to be stable
UK data - BRC sales (like-for-like), April: +5.6% y/y (expected +0.5%)
Major police operation underway at Paris Gare du Nord (railway station)
An RBNZ 'preview' from NZ shadow board - recommend a tightening bias
Westpac on Australian dollar fair value models, down with commodity prices & Fed
Australia press: Ratings agency Moody's puts federal government on notice
ICYMI: Forexlive Americas FX news wrap: Macron wins, EURUSD falls
Australia budget day - preview
Trade ideas thread - Tuesday 9 May 2017
IMF on New Zealand - "banking system is resilient to severe shocks"
Economic data due from Asia today (and Australian budget later)

I'm gonna begin the wrap of the session a little different, with a "here's what's still to come". I won't make a habit of this but in a few hours time is the Australian federal government budget for next year:

Australia budget day - preview
Australian budget preview 2
Australian budget preview 3
Australian budget preview 4

OK, and so to today's Asia session.

USD/JPY was an early mover, extending its gains to fresh highs (compared with the overnight move), up above 113.30. There was little in the way of fresh news, apart from an appearance in the Diet from BOJ Governor Kuroda, with comments indicating 'powerful easing' is still appropriate in his view. In addition to Kuroda we got wages data (March); a huge miss on expectations (really, it was a big miss both in nominal and real terms) and coming in well below the prior.

The BOJ and Japanese government are hoping for wages to improve to drive consumption to drive a move towards the inflation target.

Just. Not. Happening.

A little later we got comments from ratings agencies Moody's saying, amongst other things:

The Bank of Japan is emerging as main source of affordable funding for government

I wonder what their first clue was?

USD/JPY topped just above 113.30 and is tracking sideways as I update around 113.23-odd. Overall a tight range for the session for it and yen crosses overall.

EUR, CHF, GBP, NZD, CAD - all are little changed against the USD.

The Australian dollar slid further; it had sat very gently bid in the Australian morning, but a big miss for March retail sales data (released along with retails sales ex-inflation for Q1, which also showed a decline from the previous quarter) saw a leg down, below the overnight lows and extending the AUD/USD lower trend. The move lower moved a little further soon after and it is barely off its session low as I update.