breaking news End Of ForexLive Asia-Pacific FX News: Japan February CPI Headline Falls From January

During the Asian session, the focus was on February CPI data from Japan. The overall rate fell sharply from January:

Overall rate 3.3% y/y

expected 4.1%, before 4.3%

But the two basic measures were much more “sticky””

CPI ex-Fresh Food 3.1% y/y (this is the “base” rate)

expected 3.1%, before 4.2%

CPI excluding food, energy 3.5% y/y (this is the “core-core” rate, closest to the US measure of core CPI)

expected 3.4%, before 3.2%

The Bank of Japan continued to expect inflation to decline from around September/October. The new Governor of the Bank of Japan, Ueda, takes office from the second week of April. So far, he hasn’t shown much inclination to push for a tougher policy.

During the session, USD/JPY fell from highs above 130.80 to a six-week low below 130.30. As I report, it has recovered to be in the mid range around 130.50.

Otherwise, the majors’ ranges were more subdued and the USD was a bit stronger. CHF, CAD, AUD, EUR, NZD all down against the big dollar.

In other data news, Australia’s March flash PMI fell in contraction. Japan’s flash PMI in March showed manufacturing remaining in contraction (with a slight improvement from February), while services continued to expand and the composite index hit a 9-month high.

The PBOC strengthened the CNY by more than 300 basis points at the benchmark rate today, confirming the rise in the CNY on Thursday.

In geopolitical news, the United States has carried out airstrikes against Iranian installations in Syria.

Asian Stock Markets:

• Japan Nikkei 225 -0.26%

• Shanghai Chinese Composite -0.65%

• Hong Kong’s Hang Seng -0.49%

• South Korean KOSPI -0.65%

• Australian S&P/ASX 200 -0.26%