ForexLive Asia-Pacific FX news wrap: Yen higher

• Japan expects an increase in debt-service costs by 25% by 2028
• Trump says he has been briefed on ‘terrible accident’ – helicoper and plane collide
• RBA looks at how changes in monetary policy flow through to the economy, impact inflation
• Reserve Bank of Australia Brad Jones, Assistant Governor (Financial System) speaking soon
• Goldman Sachs still expect June and December Federal Reserve rate cuts
• If you hear of an incident at DCA airport in Washington – there is an aircraft down
• Nissan to cut worker numbers at Tennessee and Mississippi plants
• Bank of Japan Deputy Governor Ryozo Himino is speaking soon
• Yen finding strength, USD/JPY around 154.50
• Goldman Sachs CEO sees narrow range of 2025 Federal Reserve rates amid inflation concerns
• National Australia Bank forecasting a February Reserve Bank of Australia interest rate cut
• Australian export prices rise in Q4 2024
• Trump to rescind rule requiring states to set declining targets 4 greenhouse gas emissions
• New Zealand January business confidence 54.4 (prior 62.3)
• Canadian Foreign Minister Joly says ‘cautiously optimistic’ about tariff talks with Rubio
• Arrangements for a meeting between Trump and Japan PM Ishiba close to being finalised
• Bank of Canada Governor Macklem says tariff threat weighing on CAD
• Subtle shift in the FOMC statement language indicates why rate cuts have been put on hold
• Goldman Sachs says Federal Reserve is waiting for further inflation progress to cut again
• Reserve Bank of Australia to cut interest rates say ANZ, Commonwealth Bank and Westpac
• Forexlive Americas FX news wrap 29 Jan. The BOC cuts rates by 25 bps. Fed remains steady.
• New Zealand data – December 2024 trade balance surplus (exports up, imports weaker)
• Markets in Asia will be disrupted by holidays again today
• Trump speaking – he is really upset the Federal Reserve didn’t cut interest rates
• Microsoft and Tesla shares lower after earnings
• Trade ideas thread – Thursday, 30 January, insightful charts, technical analysis, ideas

JPY
was the notable mover on the session. USD/JPY traded from an early
session high around 155.20 to lows circa 154.30 before stabilising
somewhat (its poking 154.60 as I update).

There
was no major fresh news for either the USD or JPY. One item I did
note was that plans have firmed up for a meeting between Japan’s
Prime Minister Shigeru Ishiba and President Trump in Washington on
February 7. In the post to let everyone know, I speculated that there
might be some currency discussion between the two, a lower dollar and a
higher yen would be a win for each of them. I thought perhaps such a
discussion would be unlikely, but maybe there was something in it. I
can’t find anything else that may have catalysed the move down
for the pair today.

One
thing I will add is that liquidity was thinner than normal with Hong
Kong and Singapore markets out for holidays (mainland China too).

Elsewhere
major FX was relatively subdued. As I post the USD is gaining a few
tics.

In
non-market news, there was a horrendous collision in Washington DC
between a military helicopter and a commercial passenger plane. There
are multiple fatalities.

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