ForexLive Asia-Pacific FX news wrap: USD/JPY rises to 151.30

FOMC previews:

• FOMC preview – shift to projection for two rate cuts for 2024 from 3 is a “close call”
• FOMC preview – a 25% to 30% chance of the Fed signaling only two rate cuts in 2024
• Federal Open Market Committee (FOMC) preview: the clear risk is it defers cuts
• FOMC preview – we’ll get hints on 3 or 2 cuts ahead this year

Other items today:

• Ether ETFs Likely Won’t Get Approved in May
• “How the BOJ’s plan for a smooth exit from negative rates unraveled”
• China sets 1 and 5 year LPR rates unchanged, as expected
• PBOC sets USD/ CNY mid-point today at 7.0968 (vs. estimate at .71967)
• Morgan Stanley Wealth Management cite BOJ tightening pivot as a risk to US equites
• Estimates are that drone strikes have taken out 900,000 bpd Russian oil refining capacity
• China and Australia foreign ministers met – China says the two economies are complementary
• Goldman Sachs on two reasons the broader US equity market will catch up, not catch down
• BOJ policy pivot over 4 now: “We expect no more policy tightening in the next few months”
• New Zealand Q4 current account deficit rises slightly larger than expected
• Warnings of BOJ yen intervention as USD/JPY rises higher
• Goldman Sachs like oil prices higher on both supply and demand factors
• Forexlive Americas FX news wrap: Canadian CPI surprises to the downside, risk trades pop
• Oil – private survey of inventory shows headline crude oil draw
• US stocks close higher in an volatile day with the price moving above and below unchanged
• New Zealand data: Q1 Consumer confidence rose to 93.2 from 88.9 in the previous quarter
• Trade ideas thread – Wednesday, 20 March, insightful charts, technical analysis, ideas

The
reverberations of the Bank of Japan meeting on Tuesday continued for
the yen today here in Asia. Yen crosses rose further with USD/JPY
heading up to 151.30 while EUR/JPY rose to just shy of 164.50, to its
highest since 2008. It seems only a matter of time before the verbal
(at least) intervention begins again to prop up JPY. Japanese markets
were closed today for a public holiday.

Small
ranges prevailed across much of major FX. Traders are awaiting the
Federal Open Market Committee (FOMC) statement and the press
conference from Federal Reserve Chair Powell. There are previews in
the points above.

The
People’s Bank of China set Loan Prime Rates today, both the 1-year
and the 5-year remained unchanged, as expected, at 3.45% and 3.95%
respectively. Last month the 5-year LPR was cut by 25bps, its largest
cut ever.

Chinese
Foreign Minister Wang Yi met with Australia’s Foreign Affairs
Minister Penny Wong in Australia today, a sign of the continuing,
slow, warming of relations between the two countries.

USD/JPY daily candles – getting back to late 2023 highs:

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