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Asia Recap: Yen on the back foot again

FXStreet (Bali) - It was a low key affair in Asia, with the USD chopping around after the firmer tone seen on Monday, with the Aussie and Kiwi exhibiting a slightly better tone, while the Japanese Yen was once again the worst performer.

AUD/USD printed an early Asian low at 0.8616 before a recovery towards 0.8650 following an upbeat NAB business conditions print, which came in contrast with a slight decline in NAB business confidence. The pair ends Asia in a consolidation mode just below the mid-round number. NZD/USD carved out a slim range ahead of the RBNZ Financial Stability report later today (20 GMT). The Kiwi lagged AUD moves, amid the absence of any econ release. As per USD/JPY, after an initial consolidation, the pair broke higher above 115.00, positing session highs at 115.10, with yesterday's setback having solidified 114.00 as an even stronger support now; the nikkei, up 1% heading into the close, helped sustain the gains in Yen crosses. EUR/USD and GBP/USD traded in tight ranges lagging USD moves, with pricing at 1.2425 and 1.5840 respectively.

In the economic calendar, only 2nd/3rd-tier events were published, not stimulating currencies to move much. In New Zealand, electronic card retail sales (YoY) increased to 5.7% in October from previous 5.4%, with the (MoM) reading at +1% in October from previous -0.1%. In Japan, trade balance - BOP Basis - came at ¥-714.5B (Sept) vs ¥-831.8B last, with the current account n.s.a. above expectations at ¥963B in Sept vs ¥534.2B prior. Meanwhile, Japan bank lending (YoY) increased to 2.4% in October from previous 2.3%. In the UK, the BRC retail sales monitor - All (YoY) registered at 0%, which was above expectations of -0.5% for Oct. In Australia, House Price Index (QoQ) MET expectations (1.5%) in 3Q, with the (YoY) reading down to 9.1% in 3Q from previous 10.1%. Also in Australia, NAB’s Oct business survey recorded a sharp increase in business conditions from 1 in Sept to 13 in Oct, the largest monthly increase in the history of the survey, while business confidence surprisingly fell to 4 in Oct vs 5 in Sept.

Other news making headlines in Asia included an article by the WSJ, with BoJ members questioning Kuroda's ease money stance. In the US, Boston Federal Reserve President Eric Rosengren, crossed the wires, via Reuters, noting that the Fed should leave accommodation in place until certain 2% inflation target is met, and among other headlines, he added that recent appreciation of the USD is not a concern given divergent US and Europe policies.

Japan data due, USD/JPY may jump around – FX Charts

Jim Langlands of FX Charts suggests that the USD/JPY pair may jump around a bit in Asia as there is some Japanese data due today, and sees that overall, a session of sitting close to 115.00 would not surprise given that the shorter term indicators are somewhat mixed.
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