ForexLive Asia FX news wrap: Yen gets some of its mojo back

Forex news for Asia trading Wednesday 11 May 2016

Moody's: Australian major banks face increased challenges for rest of 2016
NZ Prime Minister Key ejected from parliament by speaker
LDP's Yamamoto: PM could make a final decision on a sales tax after G7
Canadian oil-sands facilities, 90% unscathed, expected to restart within days, weeks
RBA may rethink its inflation target
Goldman Sachs says the USD/JPY has bottomed
Australia March Home loans: -0.2% m/m (expected -1.5%)
RBNZ's Wheeler now speaking in parliament
PBOC sets USD/CNY mid-point today at 6.5209 (vs. yesterday at 6.5233)
US primaries- Trump wins Nebraska (36 winner take all delegates for Mr. T)
Australia - Westpac Consumer Confidence for May: +8.5% (prior -4%)
Aussie asset manager: "RBA ... move to 0% or lower a distinct possibility”"
Nomura forecasting another 2 RBA rate cuts in 2016
Japan - Abe adviser Fujii: Need at least 10tln yen of fiscal spending
US politics - Projected West Virginia primary winners; Trump, Sanders
NZ house prices - REINZ says median +7.7% y/y
RBNZ's Wheeler: Growth slowing in a number of trading partner economies
Russia's Sechin says internal differences will kill OPEC
Oil - Saudis say they'll pump even more, and prices will go up!
Trade ideas thread for Wednesday 11 May 2016
RBNZ Financial Stability Report - housing and dairy are risks to stability
Oil - American Petroleum Institute (API) data: Build of 3.4mln barrels

After popping to a high in very late NY trade around 109.40 ( just shy of there) USD/JPY ticked slowly back a few points in subsequent hours and stabilised in the 109.05/109.20 area before plunging in the Tokyo morning. There was little in the way of fresh catalysts for it, but the move was sharp, from around 109.15 to under 108.80 before falling a few minutes later to a session low toward 108.60. Yen crosses were lower with this move also.

Moves in other majors were less dramatic, EUR/USD gained a few points on the session, as did the Swissy against the USD. Cable popped above 1.4460 and has since slipped back around 1.4440 again.

The AUD gained after very strong consumer sentiment data in the morning but was falling back when housing finance data hit pre-lunch to lose all its gains and be slightly lower on the session as I update. Stop loss buyers are clustered above 0.7400 but that has proven a step too far this session.

There was plenty of NZD activity today also with the release of the RBNZ Financial Stability Report disappointing those looking the bank to take further action directed to calming the housing market. The NZD shot higher in response to this disappointment (here's why). Governor Wheeler spoke later (twice), keeping the NZD ticking over not too far from earlier session highs.

Winding the clock back even further, the API oil inventory report saw a huge surprise build in inventory, which sent the oil price on a drop, but not by a lot and it has recovered somewhat.

Gold is a bit of a quiet achiever here today, gaining a few dollars.

Regional equities: