The Bank of Japan will on Wednesday release the minutes from its September 19 monetary policy meeting, highlighting a light day for Asia-Pacific economic activity.
At the meeting, the Policy Board of the BoJ voted 7-2 to maintain interest rate at -0.1 percent on current accounts that financial institutions maintain at the bank. The bank said it will purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent.
Japan also will see final October numbers for the services and composite PMIs from Jibun Bank; the previous scores were 50.3 and 49.8, respectively.
The central bank in Thailand will wrap up its monetary policy meeting and then announce its decision on interest rates; the bank is widely expected to keep its benchmark lending rate steady at 1.50 percent.
The U.S. dollar held above the flat line right through the session on Tuesday. The focus was on President Donald Trump's speech at The Economic Club of New York.
The dollar index opened flat at 98.21 and edged higher gradually to 98.42 a little before noon, and spent the rest of the day moving around 98.30. Trump's speech provided no significant details on the state of trade talks between the U.S. and China. The President spent the bulk of his remarks touting the strength of the U.S. economy, crediting his policies cutting taxes and regulation for the strong growth seen in recent years.
Trump attacked the Federal Reserve and claimed the economy and the markets would be even stronger if the central bank would take his advice and slash interest rates further.
"But we all make mistakes, don't we?" Trump said in an apparent reference to his decision to nominate Federal Reserve Chairman Jerome Powell. Trump also briefly discussed the trade talks with China, claiming the Chinese are "dying to make a deal" and an agreement is "close."
The president said a significant phase one trade deal with China "could happen soon" but stressed that he would only accept an agreement that is good for U.S. companies and workers.
Trump later denied that his trade war with China is hurting industry or causing uncertainty and threatened further increases in tariffs if a deal is not reached.
Against the euro, the dollar strengthened to 1.1011, gaining 0.22%.
The Pound Sterling was down slightly against the dollar with a unit of sterling fetching $1.2848, compared to Monday's close of $1.2853.
The UK labor market remained weak in the third quarter as employment and vacancies declined notably ahead of general election.
The employment rate fell by 0.1 percentage point to 76% in the third quarter, the Office for National Statistics reported Tuesday. The ILO unemployment rate dropped to 3.8% in the third quarter from 3.9% in the preceding period.
Against the Japanese yen, the dollar was slightly weak at 108.98 yen.
The Aussie shed ground against the dollar. The Aussie-Dollar pair was last seen hovering around 0.6840.
The loonie and Swiss franc were also weak against the greenback, with the respective pairs quoting at 1.3239 and 0.9929, respectively.
Dollar Exhibits Mixed Trend Against Major Currencies
The U.S. dollar turned in a mixed performance against major currencies on Wednesday, although the dollar index spent much of the session in positive territory, aided by positive comments about the state of the economy by the Federal Reserve Chair Jerome Powell.
Testifying before Congress, Powell reiterated that the central bank is likely to leave interest rates on hold in the near future.
Powell told members of the Joint Economic Committee that the Fed would leave rates at their current level unless there is a material change in the economic outlook.
"We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook of moderate economic growth, a strong labor market, and inflation near our symmetric 2 percent objective," Powell said.
"Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly," he added. "Policy is not on a preset course."
The Fed chief noted that noteworthy risks to the outlook remain, citing sluggish growth abroad and uncertainty about trade amid the ongoing U.S.-China trade war.
The dollar index was last seen at 98.37, up from previous close of 98.31. The dollar moved in a very narrow band between 98.29 and 98.45.
Against the Euro, the dollar was down slightly at 1.1003, recovering from a low of 1.1022.
The Pound Sterling was up marginally against the dollar, at $1.2847, after moving between $1.2822 and $1.2863.
Against the Japanese Yen, the dollar was down at 108.84 yen, compared to 108.84 yen on Tuesday.
The dollar was up against the aussie with the AUD-USD pair at 0.6837.
Against the loonie, the dollar was gaining at 1.3254, and against Swiss franc it was down notably at 0.9903.
According to the data released by the Labor Department, U.S. consumer prices rose by slightly more than anticipated in the month of October.
The Labor Department said its consumer price index climbed by 0.4% in October after coming in unchanged in September. Economists had expected consumer prices to rise by 0.3%.
Excluding food and energy prices, core consumer prices edged up by 0.2% in October after a 0.1% uptick in September. The uptick in core prices matched economist estimates.
Japan is on Monday scheduled to release Q3 numbers for housing loans, highlighting a modest day for Asia-Pacific economic activity. In the three months prior, housing loans were up 2.2 percent on year.
Japan also will see October figures for condominium sales; in September, sales plummeted 30.0 percent on year.
Indonesia will release October figures for imports, exports and trade balance. In September, imports were worth $14.26 billion and exports were at $14.10 billion for a trade deficit of $160.5 million.
Singapore will provide October trade data; in September, imports were worth SGD39.48 billion and exports were at SGD43.51 billion for a trade surplus of SGD4.03 billion.
Thailand will release Q3 numbers for gross domestic product; in the three months prior, GDP was up 0.6 percent on quarter and 2.3 percent on year.
Hong Kong sill see October figures for unemployment; in September, the jobless rate was 2.9 percent.
Japan will on Wednesday release October figures for imports, exports and trade balance, highlighting a modest day for Asia-Pacific economic activity.
Imports are expected to plummet 15.4 percent on year after dipping 1.5 percent in September. Exports are called lower by an annual 7.5 percent after falling 5.2 percent in the previous month. The trade balance is tipped to show a surplus of 301.0 billion yen following the 123.0 billion yen shortfall a month earlier.
Australia will see October results for skilled vacancies and for the leading economic index from Westpac. In September, vacancies fell 0.7 percent on month and the economic index eased 0.08 percent on month.
China will release prime rate numbers for its one-year and five-year loans. The one-year is called steady at 4.2 percent, while the five-year is expected to rise to 4.9 percent from 4.85 percent previously.
Malaysia will provide October numbers for producer prices; in September, inflation was flat on month and up 1.1 percent on year.
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