ForexLive Asia-Pacific FX news wrap: Yen a little weaker on day, USD/JPY back above 149.00

• BoJ ex-Chief Economist says BoJ policy rate could rise to 2%. July likely for next hike.
• Heads up for a China news conference on Friday – Foreign Minister speaking
• Goldman Sachs expect Chinese banks to undergo capital restructuring with RMB500bn in bonds
• China sets record in bad asset disposals, shifts focus to housing market
• 2 headlines: Trump to abolish education department, China to issue education whitepaper
• The shell that hit a house in South Korea is being reported as a military drill misfire
• More on Mexico seeking new buyers for its oil due to Trump tariffs
• US technology leaders will meet with Trump next week
• A shell has hit a house 35km from the North Korea border, 3 injured
• PBOC sets USD/ CNY reference rate for today at 7.1692 (vs. estimate at 7.2386)
• Canada is willing to reduce tariff retaliation if Trump drops back some tariffs
• Mr Yen Mimura says seeing an increase in trade protectionism, such as tariffs
• BlackRock-Led Consortium Seals Deal for Majority Stake in Panama Ports Business
• Trump says he’s working on bill to fund government until September
• Australian data: Trade Surplus beats, Building approvals beats
• New York Fed’s Perli speaks on the scenario if the Fed pauses quantitative tightening
• EUR up on German spending bazooka, but here’s what’ll send it plunging again
• Fed’s Perli says balance sheet drawdown has been smooth
• South Korean February headline CPI comes in above expected at +2.0% y/y
• Trump is considering agricultural ‘carve outs’ re Mexico and Canada tariffs
• Canada’s Foreign Minister urges Canadians not to vacation in the US
• Here’s a forecast for Reserve Bank of Australia rate cuts in 2025: May and August
• More on Canada may consider oil and gas exports as leverage over US tariffs
• ICYMI – China says if the US wants any type of war, China is ready to fight till the end
• Forexlive Americas FX news wrap 5 Mar: Tariff reprieve possible.EUR moves higher.USD lower
• Canada For Min says potentially use oil and gas exports as a lever if US tariffs continue
• Trade ideas thread – Thursday, 6 March, insightful charts, technical analysis, ideas

It
was a mixed day of small ranges for major FX here in Asia.

The
yen lost some ground with the announcement from the White House on
Wednesday of a one-month tariff reprieve for auto imports from Mexico
and Canada boosting the ‘risk’ outlook. Further encouraging news on tariffs during the Asian morning:

• Trump
  is considering agricultural ‘carve outs’ re Mexico and Canada tariffs
• Canada
  is willing to reduce tariff retaliation if Trump drops back some
  tariffs

Also
notable in Japan were rising JGB yields:

• the
  10 year yield hit 1.5% and its highest since 2009
• the
  20 yr hit its highest since 2009 also, while the 30 yr its since 2008

Ahead
of the European Central Bank meeting today (a 25bp rate cut is
widely expected, the most focus is on what indications we’ll get as
to what comes in the months ahead) EUR/USD ticked a little higher
towards
1.0820 before dropping back a little under 1.0800 again. Other major
FX followed a similar pattern.

Chinese
equities rose followed the lead from Wall Street and also the
barrage of economic announcements made Wednesday at the NPC, trading higher on the mainland and in Hong Kong.

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