OctaFX | OctaFX Forex Broker
Open trading account

Asia Recap: BoJ eases further, market caught by surprise

FXStreet (Bali) - The BoJ monetary policy decision caught the market completely wrong-footed, as the Central Bank decided to ease further by expanding its base money target to 80 trln yen from its 60T-70T yen in annual rise.

USD/JPY skyrocketed towards 110.30 - new multi-year highs -, with the bullish tone likely to extend. AUD/USD saw a tight range between 0.8816-0.8850 ahead of the BoJ, with a break below 0.88 on USD strength setting a new low of 0.8792, which follows a recovery off 0.8750 after a counter-intuitive USD move post upbeat US GDP headline. NZD/USD saw some late activity, currently at 0.7830. EUR/USD was glued to 1.26 round number until the BoJ call, then we saw 1.2580 as lowest. GBP/USD was capped by 1.60.

In the fundamental space, Japanese inflation came slightly softer than expected, although as RBS had anticipated prior to the release: "This is probably because of the reduction in real disposable income after the CT hike, which seems to have put pressure on household consumption more than was initially anticipated." Also, out of Japan, Reuters reported that the govt is set to approve GPIF assets reallocation this Friday, raising the country's equity target to 25 pct, citing sources familiar with the matter.

In New Zealand, building permits s.a. (MoM) fell from previous 0% to -12.2% in September. Favouring the New Zeland economy, China lifted its ban on Fonterra’s whey products. In Australia, private sector credit (YoY) climbed from previous 5.1% to 5.4% in September, while MoM registered 0.5% above expectations of 0.4%. Meanwhile, Australia's producer price index (YoY) declined to 1.2% in 3Q from previous 2.3%, while the QoQ increased to 0.2% in 3Q from previous -0.1%.

Japan Annualized Housing Starts increased to 0.88M in September from previous 0.845M

Read more Previous

Japan Construction Orders (YoY) fell from previous 8.6% to -40.3% in September

Read more Next
Start livechat