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

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