Forexlive Asia FX news wrap: BOJ on hold, USD/yen jumps after dip, Nikkei too

Forex news for Asia trading Friday 30 October 2015

USD/JPY joins the Nikkei in making a fresh session high
Japan lobby group seeks corp tax cut to 30.88%
Nikkei reports Japan considering extra 3tln yen budget
Yellen and Kuroda sitting in a tree, H-O-L-D-I-N-G
Bank of Japan announcement: NO CHANGE
China Wealth Management Products taking lots more risk to maintain returns
Bloomberg latest survey: 11 of 28 see RBA rate cut next week
Japan economy minister Amari: BOJ makes all its own decisions
Heads up for weekend data out of China, PMIs can move markets
NZ data: September M3 Money Supply +8.5% y/y (prior +9.0%)
Moody's: Chinese local governments under pressure from a decline in land sales
Taiwan narrowly avoids recession, Q3 GDP slumps worst in six years
Today's mid-point reference rate for the yuan (USD/CNY): 6.3495
Australian data: Q3 PPI ( +0.9% q/q) and private sector credit (+0.8% m/m)
UK data - GfK Consumer confidence for October: 2 (expected 4)
NZ - ANZ Business confidence 10.5 and Activity Outlook 23.7 (October)
The art and science of knowing what's expected in the FX market
Japan data - Overall Household Spending -0.4% y/y (+1.1% expected) and employment data
Japan inflation for September, headline at -0.0% y/y (0.0% expected)
The 3 key things that have happened last month that mean the RBA may be forced to cut
Real or not???? "US asked ECB to refrain from talking down #euro - sources tell MNI"
Japan press: BOJ expected to delay 2% price target by 6 months
NZ data - September Building Consents (Permits): -5.7% m/m (prior -4.9%)
Survey shows minority of economists expecting an RBA rate cut next week

A waiting day for the BOJ announcement, but a bit to chew on ahead of then.

NZ data started us off with another down showing for bulding permits, but then a good bounce for business confidence and activity (with the come-back from the lows for dairy prices immediately cited, but note that the survey provider, ANZ, reckon the bounce has more to it than that).

NZD found a steady bid and then jumped on ANZ's data. It hasn't really taken much of a backward step all day until its topped (for the session so far) just above 0.6750, spent some time sideways there, and is a little lower now as I update.

Better data on the other side of the ditch, too, with PPI data from Australia coming in higher and, more importantly, private sector lending having both its fastest monthly rise since September of 2008 and its best annual growth (at 6.7% since December of 2008). Lending for business accelerated while lending for housing slowed ... these are going to be heartening figures for the Reserve Bank of Australia and will introduce a few doubts into the 'rate cut next week' camp. AUD/USD ground out a gain also today and is just off session highs under 0.7110 as I update.

Ahead of the BOJ we got employment, household spending and CPI data from Japan (see bullets, above). Spending came in at another disappointingly weak reading, and the CPI data was more or less on expectations. not much to move the currency, though the yen did strengthen just a little in the hours ahead of the BOJ announcement.

We got the BOJ decision (no change!) and the yen was immediately marked lower. it came back nearly as quickly, though and is more or less back to where it was at announcement time. Its still below the session highs, though ... OK and As I update USD/JPY has gained to a new session high now.

On the Nikkei .... after a post BOJ announcement dip to session lows it has roared back higher.

Headlines of an extra budget from the Japanese government, along with one saying business lobbyists are seeking a corporate tax cut would not have done the stock index any harm and its pretty much all i can find that might help explain the bounce to a new day's high.

Regional equities: