ForexLive Asia-Pacific FX news wrap: USD rose a touch higher in a holiday-impacted Asia

• Timiraos on FOMC – rate cuts postponed “for the foreseeable future”, Powell the main event
• JP Morgan’s Marko Kolanovic cautions against buying the dip in stocks
• Citi says traders expect the biggest Fed-day move in the S&P 500 since 2023
• Japan may provide tax breaks for companies converting foreign profits into the yen
• RBNZ Deputy Governor Hawkesby says higher interest rates means cooling jobs market
• Japan April 2024 Manufacturing PMI (final) 49.6 (flash was 49.9, prior 48.2)
• Fed rate cuts in 2024? BlackRock’s CIO predicts more monetary easing ahead
• Former Dallas Fed president Kaplan’s solution for inflation not about the Federal Reserve
• Australia April Manufacturing PMI 49.6 (flash was 49.9, prior 47.3)
• New Zealand data: Unemployment rate 4.3% (vs. 4.2% expected, 4.0% prior)
• BoA on the FOMC meeting – more clarity on inflation is needed, in “want and see” mode
• Japan’s currency authorities “have entered a new phase” in their handling of yen weakness
• Reserve Bank of New Zealand – risk of persistent inflation, rates restrictive for longer
• Oil – private survey of inventory shows a large headline crude oil build vs. draw expected
• Goldman Sachs says yen trading volumes skyrocketed to nearly ten times normal on Monday
• Forexlive Americas FX news wrap: April ends with a thud
• Trade ideas thread – Wednesday, 1 May, insightful charts, technical analysis, ideas

There
were market holidays in China, Hong Kong and Singapore today. China
is out tomorrow and Friday also.

USD/JPY
was once again a focus. The US dollar added on some points almost
across the majors board although ranges were not large. USD/JPY is
above 157.90 as I am posting with traders wary of renewed
intervention from the Bank of Japan. We are heading into the Federal
Open Market Committee (FOMC) meeting later today and perhaps the best
hope for a respite for the yen is that markets are positioned for a
less dovish Fed and we see a ‘sell the (USD) fact’ response.
We’ll see.

From
New Zealand today we had the Reserve Bank of New Zealand’s
Financial Stability Report, in which the Bank notably warned that
there remains a risk that new or persistent inflation pressures could
mean global interest rates remain restrictive for longer, placing
continued pressure on households, businesses and the financial
system. Following the Report were employment data from New Zealand,
with the unemployment rate rising while employment fell. In a press
conference later, officials at the RBNZ accepted that sustained high
rates in the country are resulting in a cooler jobs market.

AUD,
NZD and CAD are all little changed against the USD. EUR, GBP and CHF
are a little lower. As is yen, already covered above.

USD/JPY tip toeing higher

This article was written by Eamonn Sheridan at www.forexlive.com.