A cautious tone prevailed in Asia, as investors braced for central banks’ policy decisions. However, the BOJ’s no policy change had virtually no impact on the markets, with the yen on back foot amid a pause in the broad based USD sell-off. Meanwhile, the Antipodeans were offered support from upbeat Chinese industrial profits data amid lower oil prices.
The CAD emerged the top performer and gained more-than 100-pips after Trump agreed not to terminate the NAFTA at this time. USD/CAD fell sharply from 14-month tops of 1.3648 to hit a daily low of 1.3530.
The immediate focus now remains on the BOJ press conference, followed by the Spanish CPI figures and RBA Governor Lowe’s speech ahead of the ECB monetary policy decision and Draghi’s presser due later in the European session. The US docket also has plenty of risk events in-stored, including the durable goods, goods trade balance, pending home sales and jobless claims data.
Main topics in Asia
Latest statement coming out from the White House, cites that the US President Trump agreed not to withdraw from the North American Free Trade Agreement (NAFTA) this time, during his call with the Mexican President Nieto and Canadian PM Trudeau.
China’s National Bureau of Statistics (NBS) reported on Thursday that the Chinese industrial profits rose 23.8% on yearly basis in March, although slowing from growth of 31.5 percent in the first two months, as cited by Reuters.
The Bank of Japan (BOJ) concluded its 2-day policy review meeting, leaving left the monetary policy settings unadjusted, holding rates at -10bps, while maintaining 10yr JGB yield target at 0.00%.
More details on the earlier headline – Airstrikes on Syria’s Mezzeh and international airports in Damascus
Key Focus ahead
The single currency is alternating gains with losses vs. its American counterpart on Thursday, taking EUR/USD to a consolidative theme around 1.0900 the figure ahead of the ECB meeting.
Analysts at National Australia Bank (NAB) provides a brief preview of the ECB monetary policy decision due on the cards later in the European session.
The market can return to one of its favorite games later today: guessing what Mario Draghi can say to either talk up or talk down the euro. The ECB decision will be released at 1245 BST, with the press conference starting at 1330 BST.
Analysts at Nomura offered a preview for the next key US data in durable goods orders.