- Yen drops on dovish BOJ meeting minutes, Kuroda commentary
- The Japanese unit may bounce as market-wide risk appetite sours
- NZ Dollar lower amid pre-positioning for RBNZ policy meeting
The Japanese Yen traded broadly lower in Asia Pacific trade, stung by a familiarly dovish tone in minutes from September’s BOJ policy meeting and similarly-themed comments from BOJ Governor Haruhiko Kuroda. It is somewhat surprising that such well-worn tropes were market-moving, especially against given a drop in Tokyo-listed shares that might have been expected to boost the typically anti-risk currency.
The New Zealand Dollar also declined, falling alongside local front-end bond yields. The move may have reflected pre-positioning ahead of the upcoming RBNZ rate decision. The day’s offering of economic data didn’t help matters. An ANZ report said the price of New Zealand’s commodity exports on global markets fell in October while the central bank’s inflation expectations survey pointed to bets on a slowdown.
A seemingly busy European economic data docket is nonetheless short of eye-catching releases. The day’s offering of US news-flow is only slightly more compelling, with speeches form the New York Fed’s Simon Potter and Bill Dudley unlikely to break much new ground. That might put sentiment, with FTSE 100 and S&P 500 futures hinting at a risk-off mood that might help the Yen regain some lost round.
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** All times listed in GMT. See the full DailyFX economic calendar here.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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