Yen remains weak

USD/JPY and the JPY crosses did little for most of the Asian day. Some action was seen early in the afternoon on comments from the RBA and Japan official-speak. Trading quietly between 115.42-66, USD/JPY popped to 115.88 early in the afternoon as AUD/USD dropped like a stone, lending USD a broadly bid tone, and comments from Japanese officials. PM Abe returns from an extended trip abroad Monday and could comment on elections then. A formal decision on delaying the sales tax hike may not be seen till after the Q3 GDP release. EUR/JPY traded in sync with USD/JPY between 143.57-77 before popping up to 144.12. The GBP/JPY upside was less pronounced with the cross consolidating between 182.01-69 after yesterday’s weak BoE inflation report. AUD/JPY rose modestly from 100.54 to 100.90 before plunging to 100.24 after RBA AsstGov Kent talk on FX intervention. It has since bounced with the market and algos having overreacted to what’s common knowledge. NZD/JPY see-sawed at multi-year highs between 90.62-91.11.

EUR/USD and the EUR complex was better bid in Asia. EUR/USD grinded up from 1.2426 to 1.2451, essentially moving from around one large option strike area to another. Very large vanilla option expirations are eyed at 1.2420-25 (E1.186 bln) and 1.2450 (E1.188 bln) with more above and below at 1.2500 (E2.889 bln) and 1.2400 (E1.27 bln). With very large 1.2400, 1.2450 and 1.2500 expirations tomorrow as well, EUR/USD could very well hold between 1.2400-1.2500 into next week. EUR/GBP rose modestly from 0.7881 to 0.7894, eclipsing yesterday’s 0.7890 high after the weak BoE inflation report. More short-covering may be in store. EUR/CHF treaded water between 1.2020-24 after a push down to 1.2018 last night. Talk of stealth SNB action abound.

GBP/USD fell to 1.5760 early before consolidating losses from last night after a dovish BoE inflation report. The Asia high was 1.5780.

USD/CHF traded on the soggy side between 0.9656-74 in Asia.

AUD/USD opened in Asia at 0.8717 and saw a modest bump up from 0.8707 to 0.8735 before plunging to 0.8670 on comments from RBA AsstGov Kent on possible FX intervention. Sensing overreaction to what essentially is common knowledge, AUD/USD later bounced back towards 0.8700.

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