ForexLive Asia Wrap: Australian Employment Figures Come in Hugely Above Expectations

The big news today in the Asian timezone was the astonishing Australian February employment figures release. Australian February employment was up 71,500 vs. up 10,000 expected Australian February unemployment was 5.4% vs. 5.5% expected (and participation rate up to 65.3% from 65% expected and previously) More details here Australia March MI inflation expectations 2.3% (vs. +2.2% prior) Comments from the RBNZ's Wheeler: He regards today's fall in NZD as a good thing and sees the kiwi coming off further, perhaps quite sharply. He thinks the NZD is still 10 to 15% overvalued. Of course, Wheeler has form in talking down the kiwi Comments from Abe economic adviser Koichi Hamada; he said USD/JPY may cross above 100 and that yen was not weakening too quickly On an important procedural note, the US Federal Reserve is changing the timings of post-FOMC policy announcements and subsequent press conferences. Details here. Xi Jinping has been formally named as President by the China National People's Congress All 3 of Abe's nominees for the BOJ leadership positions, Kuroad, Iwata and Nakaso, were approved by the lower house of the Japanese parliament. The upper house vote is scheduled for 0100GMT on Friday (the 15th  March) Japan final January industrial output +0.3% m/m (vs. +1.0% for the preliminary) Japan January industrial production (final) y/y -5.8% (vs. -5.1% preliminary) Japan January capacity utilization (final) m/m +1.7% (vs. +2.9% preliminary) AUD/USD was the big mover today after the blow-out jobs figures (headline +71,500 vs. +10,000 expected), up from straddling 1.0300 just prior to the release to 1.0360/65 then to a high of 1.0384 before settling sideways for the balance of the session. NZD/USD had its own swings following the ‘no change' decision on rates in the late New York (or, early New Zealand I suppose) time zone. Wheeler's comments (see bullets, above) saw the NZD try to dip further but it was supported by bids ahead of 0.8160 and settled sideways too. EUR/USD popped to resistance around 1.2975 as the AUD rallied but lost ground for the rest of the day to settle below 1.2950. GBP/USD, too, had a narrow range, ticking higher to 1.4950 but settling around 1.4925 into very early Europe. And so to the yen. USD/JPY lost ground through the morning, despite Abe adviser Hamada making comments that should have been supportive. Buyers who missed out on getting long sub 95.60 in Europe overnight were on the bid above 95.70, which provided enough support and follow-through to take it back above 96.00 as I write.