ForexLive Asia-Pacific FX news wrap: RBA and BOJ deliver as expected

• AUD/USD lower after RBA left its cash rate unchanged and changed wording on future moves
• European Central Bank speakers Tuesday include de Guindos and de Cos
• BOJ announces end of negative interest rates and scraps yield curve control, as expected
• RBA announce on hold cash rate at 4.35%, as expected
• Beijing official says will apply targeted policies to property
• Evergrande Real Estate Group will receive a warning and a fine of 4.18 billion yuan
• “Severe economic slowdown” comments from NZ Treasury cited as reason for NZD selling
• China’s Longi says will lay off around 5% of staff, not around 30% as some media said
• ‘Handshake’ agreement reached for US government funding deal to avert a shut down
• USD/JPY moving around, swings helped by thinning liquidity ahead of Bank of Japan decision
• PBOC sets USD/ CNY central rate at 7.0985 (vs. estimate at 7.2056)
• China’s Foreign Min says ready to work with New Zealand on upgraded Free Trade Agreement
• A People’s Bank of China monetary policy maker will be speaking later today
• Japan finance minister Suzuki says won’t comment on any BOJ policy steps to be taken
• Morgan Stanley point to a broadening of the S&P 500 rally in the past month
• UBS analyst neutral on US equities, but constructive on quality companies
• Reuters report that New Zealand Prime Minister Luxon intends visit to China
• Australian weekly consumer confidence 81.7 (prior 82.2)
• It’s a close call, but not everyone expects the Bank of Japan to tighten policy today
• ICYMI (posted Monday) – Goldman Sachs predicts three Fed rate cuts in 2024
• Standard Chartered are forecasting Bitcoin to $150,000 in 2024
• Forexlive Americas FX news wrap 18 Mar: The FX market is quiet ahead of CB decisions
• Japan to Exit Negative Interest Rates as BoJ Prepares Major Policy Shift
• US equities stumble late but still post a strong day
• Trade ideas thread – Tuesday, 19 March, insightful charts, technical analysis, ideas

It
was a session of waiting for the two central banks on the agenda, the
Bank of Japan and the Reserve Bank of Australia. I expected the BOJ
first but we got the RBA pipping them.

Both
the RBA and BOJ announced the expected outcomes.

The
RBA left its cash rate unchanged and changed wording in its statement
to less hawkish, even a touch dovish. AUD fell after the RBA.

The
Bank of Japan announced an end to negative rates, an end to YCC, to discontinue
purchases of ETFs and J-REITs, and more (see bullets above). The yen
weakened after the extremely well-telegraphed announcement. We’ll
see how it plays out now over coming hours. Ueda’s press conference
is next, due at 0630 GMT.

In
other news, US Congressional
leaders and the White House reached a handshake deal to fund the
government through September
30.

The
response of the yen after the first rate hike in 17 years and the
move from negative rates after 8 years has been subdued so far:

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