ForexLive Asia-Pacific FX news wrap: Slower CPI growth in China in March

  • Forex news for Asian trading on Tuesday, 11 April 2023

The USD strength seen on Monday (US time, Europe was out for Easter) was retraced to varying degrees here during the Asia time zone. AUD, GBP, CAD, EUR, NZD all up on the session.

Fresh news was fairly light. The Australian dollar took a bit of extra support from the news that Australia and China had reached agreement over a trade issue. China is reviewing its effective trade bans on barley. This is a notable step towards easing of restrictions on A$20 bn worth of Australian products.

Japan’s Nikkei media reported Warren Buffett is considering adding to his investment in Japanese stocks.

On data, AUD also got a little support from steady business conditions and an improvement (albeit still net pessimistic) in business confidence reported from the National Australia Bank Business Survey for March.

Data from China for inflation in March showed CPI coming in well under expectations and below the February reading. Chinese authorities will not be held back by inflation pressures should they wish to boost stimulus into the economy.

Bitcoin climbed, heading above US$30,000 for the first time since June 2022.

The Bank of Korea held its benchmark interest rate at 3.5%, in line with expectations, and for the second meeting in a row.

While on central banks, the Hong Kong Monetary Authority (HK's central bank) bought 3.8 bln HKD at 7.8500 during New York time to defend the drooping HKD. This is the 2nd such intervention by the HKMA in April already.

Asian equity markets:

  • Japan’s Nikkei 225 +1.4%

  • China’s Shanghai Composite -0.11%

  • Hong Kong’s Hang Seng +0.86%

  • South Korea’s KOSPI +1.13%

  • Australia’s S&P/ASX 200 +1.4%

audusd wrap chart 11 April 2023

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