ForexLive Asia-Pacific FX news wrap: USD/JPY dips under 154.00

• Moody’s: US CPI good, but “the stubborn strong growth in housing costs” a key frustration
• Fed speakers Thursday include Barr, Barkin, Harker, Mester, and Bostic
• European Central Bank speakers on Thursday include de Cos and Centeno
• Chinese Communist Party Chairman Xi will meet with Russia’s Putin
• Bank of England Monetary Policy Committee (External) member Megan Greene speaks Thursday
• Japan’s Economy Minister says the economy is expected to continue a moderate recovery
• Australian dollar has lost a few spreads on the unemployment rate jump back above 4%
• Australian April unemployment rate 4.1% (vs. 3.9% expected)
• PBOC sets USD/ CNY reference rate for today at 7.1020 (vs. estimate at 7.2017)
• Yes, April CPI was lower than expected, but “don’t get too carried away”
• US government department admits early release of CPI data on Wednesday
• Japan’s annualised Q1 GDP -2.0% q/q (vs -1.5% expected)
• RBA’s Hunter comments on housing market, not directly on the economy or monetary policy
• Rate cuts coming up: European Central Bank and Bank of England in June, Fed in September
• ICYMI: ECB’s Villeroy says we will very probably begin cutting at the June meeting
• The news out of China is supporting the Australian dollar, and there’s more on Friday
• BlackRock on inflation (moving in the right direction) and the Fed (higher 4 longer still)
• Kansas City Federal Reserve announce August 22 – 24 for the Jackson Hole symposium dates
• Forexlive Americas FX news wrap 15 May: Green grass ahead as CPI/spending is tame
• Fed Goolsbee says if housing inflation decrease seen in April CPI continues, that’s great!
• Trade ideas thread – Thursday, 16 May, insightful charts, technical analysis, ideas

There
was some extension of post-CPI moves during the timezone here in
Asia, characterised across the FX space by continued US dollar
weakness, but not a lot.

We
had comments from Federal Reserve Bank of Chicago President Austan
Goolsbee, who spoke in an interview. Goolsbee welcomed the better CPI
and he slipped very easily into his usual dovish self.

From
Japan we had very disappointing Q1 GDP (preliminary) data with a huge
contraction. The internals were awful, for example:

Capex
down for first time in two quarters

Exports
exports down for first time in four quarters, and the biggest
decrease since Q2 2020

Private
consumption down for fourth straight quarter

The
data will further complicate the BOJ’s efforts to raise rates.

From
Australia we had a disappointing April employment report, with the
unemployment rate jumping back above 4%. There was a net gain in jobs
on the month, all part-time (full-time employment fell).

The
Australian dollar dropped back under 0.6700 after the data.

USD/JPY
hit lows under 153.70 briefly but has ticked back above 154.00 as I
update.

AUD/USD:

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