The US Dollar touched a 2-week peak versus the Japanese Yen during Asian trading on Tuesday as waning concerns over global growth helped to push yields on US Treasuries off of the 15-month low. Overnight, Treasury yields surged with 10-year benchmark rate rising 8+ points on news that manufacturing improved in both the US and China, which gave FX traders reason to scale back safe haven bonds. The ISM Manufacturing report for March came in at 55.3, slight above the analysts' prediction of a rise to 54.5 from the previous reading of 54.2. On Monday, the Caixin Manufacturing PMI was higher at 50.8 against forecasts of a flat reading and sliding above the 50.0 threshold which separates a contracting sector from one that is expanding.
As reported at 10:48 am (JST) in Tokyo, the USD/JPY was trading at 111.3170 Yen, down 0.0897% and sliding off the earlier peak of 111.457 Yen, while the session trough was recorded at 111.298 Yen. The AUD/USD was trading at $0.7105, a gain of 0.0007%. The NZD/USD was up 0.0723% and trading at $0.6784.
RBA Decision Eyed
Markets will be watching the upcoming rate decision from the Reserve Bank of Australia. Though the consensus forecasts are calling for the RBA to maintain the status quo, FX traders are keen to know if the Australian central bank intends to follow the lead of its neighbor, the Reserve Bank of New Zealand. Markets were caught flat footed when the RBNZ outlined a more dovish outlook than had anticipated.