ForexLive Asia Wrap: Further Signs BOJ to Adopt 2% Inflation Target

New Zealand November Building Consents at -5.4% from -1.5% prior
UK December BRC Nielsen Shop Price Index All Items 1.5% YoY (vs. +1.7% expected)
Australia November HIA New Private Home Sales came in strong at 4.7% (vs. 3.4% for October)
But Australia November Retail Sales below expectations at-0.1% (market expected +0.3%), the first fall in 4 months.
Australia  Job Vacancies data -6.9% QoQ (vs. +4.2% in October)
Reuters carried an article saying the BOJ may ease again as it adopts the 2% inflation target
UK business leaders warn Cameron on EU membership

The activity today was again mainly in the Yen, with USD/JPY continuing its Europe/NY weakness into the early Asian morning, triggering stops below 87.00 but failing to extend any lower than 86.83. From here it steadied, trading in a range 86.85/87.10 before finding its feet (Japanese importers notable buyers) and progressing strongly higher on the back of EUR/JPY buying interest, all the way up to 87.55 before offers held it. It spent the rest of the afternoon around 87.40 until very early Europe. The Reuters article indicating the BOJ would adopt the 2% inflation goal came out pretty much after the rally was well underway. EUR/USD did not benefit to any great extent from the EUR/JPY buying, offers holding it below 1.3090.

The other sharp mover on the day was the AUD/USD, which traded up to just above 1.0520 only to gap 25 points lower on the release of the poor Retail Sales and even poorer Job Vacancies data; it traded in a sideways pattern then until early Europe.