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ForexLive Asia FX news wrap: Japan CPI heads lower again

Forex news for Asia trading Friday 26 August 2016

A session of small ranges as the market awaits Janet Yellen's speech at the Jackson Hole symposium on Friday morning (10am NY time, 1400GMT).

Data flow was once again light, although we did get the monthly CPI readings from Japan. These were very disappointing for the Bank of Japan and administration more broadly, far from approaching the 2% target core consumer prices fell for a fifth straight month and registered their biggest annual drop in more than three years.

The BOJ is conducting a review and assessment ahead of their next meeting (September 20 and 21) and while Kuroda and gang insist there is more they can do, what they've done so far has not got them close to their 2% inflation goal.

USD/JPY traded quietly into and over the data release, and then a few minutes later fell 30 or so points (from circa 100.55 to under 100.40 briefly).

EUR/USD ticked a few points higher through the session here, while USD/CHF dropped a few points. AUD and NZD (against USD) also found a few extra points

There were a few comments about the place from central bankers on the sidelines ahead of the Jackson Hole symposium.

Regional equities:

  • Nikkei -1.12%
  • Shanghai +0.57%
  • HK +0.60%
  • ASX -0.19%

Still to come:

  • At 0500GMT the Bank of Japan release their own measure of inflation, which is a national measure excluding fresh food and energy. Expected is +0.7% y/y, prior 0.7%. The official CPI data came out earlier (Headline CPI -0.4% y/y vs. an expected -0.4%)

  • Here is the agenda for speakers at Jackson Hole

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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