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20 Feb 2013
Session Recap: Yen tops the climbers; Kiwi crashed on RBNZ intervention threat
A rather lively Asian session, with two main themes at the fore. First, more Japanese jawboning on possible monetary policy tools to deploy by the BoJ, with the option of foreign bond buys less likely today.
There was also reports that the 'less dovish' BoJ candiate Mr. Muro had been crossed off the list, Yomiuri reported, without citing sources. Louder verbal evidence that Japan is not going to embark on foreign bond purchases outweighed the latter rumour, and the Yen ends Asia topping the climber's board.
Another kicker which saw the Kiwi hammered across the board was the speech from RBNZ governor to the association of NZ manufacturers, saying that the central bank considers the Kiwi way over-valued while adding the under-appreciated threat of potentially starting to intervene in the currency market to pause the rises in the New Zealand Dollar.
- Hedge funds adding Yen shorts post G-20 - FXWW
- Mr. Muto ruled out as BoJ candidate - Yomiuri
- Japan's trade deficit worsens on imports increase
- EUR/USD breaks above 1.3400 again
- Australia Q4 wage cost stabilizes (+3.4% expected)
- Australia Wage Price Index – wages slowing ‘leaving the door wide open for RBA rate cuts’ – NAB
- Big banks analysis of cable becoming increasingly bearish
- Kiwi tumbles; RBNZ ready to intervene
- BOJ’s Morimoto speech – Reuters recap
- RBNZ Wheeler speech a wake-up call for Kiwi bulls - RBS
- EUR/USD escapes bear calls; next target at 1.35
There was also reports that the 'less dovish' BoJ candiate Mr. Muro had been crossed off the list, Yomiuri reported, without citing sources. Louder verbal evidence that Japan is not going to embark on foreign bond purchases outweighed the latter rumour, and the Yen ends Asia topping the climber's board.
Another kicker which saw the Kiwi hammered across the board was the speech from RBNZ governor to the association of NZ manufacturers, saying that the central bank considers the Kiwi way over-valued while adding the under-appreciated threat of potentially starting to intervene in the currency market to pause the rises in the New Zealand Dollar.
- Hedge funds adding Yen shorts post G-20 - FXWW
- Mr. Muto ruled out as BoJ candidate - Yomiuri
- Japan's trade deficit worsens on imports increase
- EUR/USD breaks above 1.3400 again
- Australia Q4 wage cost stabilizes (+3.4% expected)
- Australia Wage Price Index – wages slowing ‘leaving the door wide open for RBA rate cuts’ – NAB
- Big banks analysis of cable becoming increasingly bearish
- Kiwi tumbles; RBNZ ready to intervene
- BOJ’s Morimoto speech – Reuters recap
- RBNZ Wheeler speech a wake-up call for Kiwi bulls - RBS
- EUR/USD escapes bear calls; next target at 1.35