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With not a lot of economic data on the docket, Asian session forex traders tuned in to central banker speeches today.

  • BOJ minutes show some members want detailed info on exit steps shared
  • Kiwi spiked lower on recorded cattle disease infection
  • Dollar struggles to hold on to previous session’s gains

Major Events/Reports:

BOJ meeting minutes

A few hours ago the Bank of Japan (BOJ) printed the minutes of its meeting last July 15-16. Read Forex Gump’s recap if you missed the event!

The most intriguing bit of the release is the members’ discussion of its QQE exit strategies. Specifically, they discussed how much information they can share to the public if and when the do start talking about it. Remember that Japan’s current inflation situation is still worlds away from the BOJ’s 2.0% target.

Despite that, some members are already saying that it’s important for the central bank to “thoroughly explain” its specific steps and possible impact on financial situation.

A few members noted that communicating steps this early in the game could cause confusion in the markets and that it’s better to focus on its internal research and analyses. One member also pointed out that their actual steps could differ from their communicated steps since the 2.0% target is “still a considerably distant goal.”

It has been a while since the meeting, though, and the central bank had also already released a Summary of Opinions, so the release minutes still barely moved the yen crosses.

NZD spikes lower on cattle disease reports

The New Zealand dollar spiked lower earlier today on reports that 14 cows in a South Canterbury farm tested positive for Mycoplasma bovis, while around 150 cows have also shown signs of infection.

The disease is commonly found around the world including Australia but only made its way to New Zealand this month. While it is NOT harmful and presents no risks to dairy products and humans, the bacterial infection can cause udder infection, abortion, pneumonia, and arthritis to herds.

Mixed risk sentiment

Oil prices continued to clock in gains on the back of bullish news from the previous sessions and optimism ahead of U.S. estimates of crude oil stocks.

Brent crude oil rose by 0.39% to $48.85 per barrel, while U.S. oil prices also edged higher by 0.60% to $46.62 per barrel.

The dollar also tried to extend its gains against its major counterparts, but cautiousness ahead of this week’s FOMC statement kept the bulls in the sidelines.

Meanwhile, a lack of major economic releases inspired mixed price action in equities markets. Nikkei is down by 0.13%; Austraila’s A SX 200 is up by 0.84%, Hang Seng is up by 0.06%, and the Shanghai index is up by 0.18%.

Major Market Mover(s):

NZD

The comdolls spiked lower when news of the cattle infection hit, but soon recovered against most of its counterparts by the end of the trading session.

NZD/USD hit a session low of .7401 before recovering to .7432 while NZD/JPY dropped to 82.34 before rising back up to 82.54 and NZD/CAD dipped to .9261 before popping back up to .9286.

JPY

The yen gained ground across the board as some traders paid attention to QQE exit discussions in the BOJ’s meeting minutes. Of course, it also doesn’t hurt that risk-takers are getting cautious ahead of this week’s FOMC statement.

USD/JPY is down by 5 pips (-0.05%) to 111.07, CHF/JPY is down by 8 pips (-0.07%) to 117.32, and GBP/JPY is down by 7 pips (-0.06%) to 114.72

Watch Out For:

  • 6:00 am GMT: Germany’s import prices (-0.7% expected, -1.0% previous)
  • 8:00 am GMT: German IfO business climate (114.9 expected, 115.1 previous)
  • 10:00 am GMT: U.K. CBI industrial order expectations (12 expected, 16 previous)