Halister News

(Bloomberg) -- Yen heads toward a first decline in seven days as technical indicators suggest USD/JPY is oversold, while the yuan falls ahead of GDP data this week.

• USD/JPY may approach 109 today, with rising implied volatility and declining riskies suggesting market is eyeing downside, according to Atsushi Hirano, head of FX sales Japan at RBS
  • Finance Minister Aso reiterates that Japan will take action as needed if there are one-sided FX moves; yen falls 0.2% to 108.15 to the dollar
  • Bank loan growth slows to 2.0% from year earlier in March, from 2.2% in prior month, following BOJ’s introduction of negative interest rates
• Yuan falls both onshore and offshore, signaling the end of a three-day rally after Premier Li Keqiang reiterated Monday evening that pressure on the economy is “relatively large.”
  • U.S. Treasuries decline, with yield on 10-year bonds up 1 bp to 1.739% in Asian trading; data tomorrow will probably show retail sales advance rose 0.1% from previous month in March, first increase in three months, according to Bloomberg survey of economists
• Other Asian currencies advanced, led by Aussie and won
  • Won gains for second day; Import price index dropped 7.7% from year earlier in March after 7.4% decline in February; export price index fell 4.5%, biggest decline in three months
  • Aussie rises for third day against dollar; Australia’s NAB business conditions at 12 in March, highest since October 2014
  • Rupee 1-month forwards snap two-day gain; data today will probably show India’s CPI rose 5.0% from year earlier in March, lowest since October while industrial production gained 0.6% in February, first increase in four months: Bloomberg surveys
  • Peso and ringgit also gain