The pair opened Asia around Y94.20 and continued its recovery off Good Friday lows of Y93.93 to Y94.38 ahead of the release of the BOJ Q1 Tankan survey. This report showed improvement in corporate sentiment but overall fell below experts’ estimates. The report also revealed that the big manufacturers and non-manufacturers plan to cut capital spending by 2.0% in the current FY, compared with a 6.8% increase in the previous survey. The Nikkei tuned negative and dragged dollar-yen off highs, with the release of weaker than forecast China PMI data adding further weight that led to a sharp move lower that took the rate to lows of Y93.84. A recovery to Y94.06 met further sell interest before rate drifted back below the figure. Euro-yen opened Asia around Y120.65, dipped to Y120.50 before picking up demand that took it on to Y120.88. Rate eased off highs on reaction to the BOJ Tankan, with the release of the China PMI data prompting Japanese sales of Aussie-yen, which in turn impacted on euro-yen, taking this rate down to Y119.94. A recovery above Y120.20 proved short lived with rate returning to place earlier lows under pressure.
EasyForexNews Research Team