Global Markets:

  • BOJ maintains plan for 60T-70T Yen annual rise in monetary base
  • BOJ says it will continue easing  until 2% inflation is stable
  • BOJ sees Japan Core CPI at about 1.25% for some time, and sees easing having intended impact on economy
  • Australia Westpac Consumer Sentiment: -6.8%, Previous: 0.3%
  • Australia Wage Price Index (Q1) (y/y): 2.6%, Expected: 2.6%, Previous: 2.6%
  • Japan Trade Balance (APR): JPY-808.9B, Expected: JPY-646.3B, Previous: JPY-1446.08B
  • Japan Adjusted Merchandise Trade Balance (APR): JPY-844.62B, Expected: JPY-633.0B, Previous: JPY-1,714.20B
  • Asian equity markets mostly lower this morning; Nikkei lost 0.50 % while Hang Seng & ASX fell 0.10 %
  • Gold at $1296, Silver at $19.47, Crude Oil at $102.90
  • US 10 year yield at 2.51

FX Flows/Orders:

  • AUD – AUD/USD is breaking lower and banks note that leveraged names have been good sellers in the past few sessions. We are near key tech support levels at 0.92 (April 03 and May 02 base) and 0.9171 (200 DMA). Talk of a barrier option at 0.92 and decent stops through 0.9190. In the cross pairs, dealers saw on-going selling in AUD/JPY, while AUD/NZD was fairly quiet.
  • CAD – USD/CAD is back above 1.09 after disappointing econ data out of Canada yesterday, but with decent selling interest noted at 1.0920 and then 1.0940, the pair is unlikely to move much ahead of Thursday’s Retail Sales data.
  • EUR – Nothing to report about the EUR/USD, but EUR/JPY is again testing key support levels around 138.50 and a break below will likely lead to a test of the 200 DMA at 137.89.
  • JPY – No surprises from the BoJ and traders are now waiting for the press conference, which will be held around 07:30 London time. In USDJPY, stops through 101.00, but talk of large bids resting at 100.80.

Upcoming Events:

  • 08:00 GMT – Euro Zone Current Account (23.0B)
  • 08:30 GMT – Bank of England Minutes
  • 08:30 GMT – UK Retail Sales (0.5 % MoM, 5.2 % YoY)
  • 14:00 GMT – Euro Zone Consumer Confidence (-8.6 %)
  • 18:00 GMT – FOMC Minutes