- S.Korea CPI rises 0.7% m/m, 2.0% y/y, in line with forecast and leaves room for possible easing by the BOK.
- S. Korean HSBC manufacturing PMI falls to 45.7 from 47.5, lowest in 43 months.
- Japan September monetary base rises 9% y/y.
- Japan August cash earnings rose 0.2 %, first rise in wages in 4 months.
- New Zealand ANZ commodity price index rose 3.5% m/m in September.
- Australia RP Data-Rismark house prices rise 1.4%
- The RBA rate decision and statement @ 04:30 GMT.
The dollar and yen were a tad softer most of the night as the “Golden Week” holiday continues to keep trading in a fairly narrow range. Market now awaits the RBA rate decision in a half hour or so with no cut expected by most.
AUD/USD now trading near session highs of 1.0375. Feeling is if they don’t cut, we may see a quick bounce over 1.0400 with sellers waiting at 1.0450. A surprise cut will probably send the pair to test support at 1.0325 and opens up target down to 1.0240/50 level.
USD/JPY quietly tested higher levels most of the session reaching highs near 78.15. I am assuming market participants did not want to hear “government will take BOLD actions ” talk from new FinMin Jojima. So the move higher was very orderly. The low of the session at 77.97 came early and ahead good bids at 77.80/85.
EUR/USD running into some resistance above 1.2905/10, but had a firm tone most of the evening. Would look for further consolidation for the time being between 1.2950 and 1.2850.
Have a good day.
