JPY

• Market turbulence. Banking developments continue to drive markets. Will the UBS/Credit Suisse news act as a circuit breaker?• Fed in focus. The US Fed meets later this week. Despite the banking issues, high inflation still points to the Fed hiking by another 25bps, in our view.• AUD volatility. AUD has edged higher recently. Another Fed rate hike and a relatively ‘hawkish’ message could see the USD bounce back. Developments in the global banking system continue to drive markets. It has been a tumultuous week, with fears of bank contagion weighing on risk appetite once again on Friday. More regional...

• Risk sentiment improves. Equites and bond yields bounced back overnight, but the moves in FX have been more contained.• US inflation. Core inflation remains stubbornly high. Services prices remain the key driver. This points to further Fed rate hikes and a USD rebound.• AUD data flow. China data is released today. Tomorrow, the Australian labour force report is due. Positive data may give the AUD a short-term boost. After a few turbulent days the tone across markets was more positive overnight, though reports late in the session that a Russian fighter jet collided with a US drone did see...