JPY

• Holding. Despite some swings in other asset classes net moves in FX have been modest. JPY outperformed. AUD still hovering near the top of its range.• RBNZ cuts. Another 50bp rate cut by the RBNZ yesterday. More easing is projected. This contrasts the RBA. We expect AUD to outperform the NZD.• AU jobs. Labour force data due today. Another solid set of figures anticipated. If realised, this will support the RBA’s ‘hawkish’ guidance about more rate cuts. Global Trends Mixed fortunes across asset markets overnight as geopolitical and economic news pushed and pulled on sentiment, especially in Europe. In...

• US macro. Weak US retail sales weighed on bond yields & the USD on Friday. AUD & NZD extend respective rebounds. US holiday today.• Central banks. Markets expecting another 50bp RBNZ rate cut with a 25bp move by the RBA anticipated. Have easing cycles already been priced in?• Event Radar. In addition to the RBA (Tues) & RBNZ (Weds), AU jobs report also due (Thurs). Global PMIs scheduled (Fri). US Fed members speaking. Global Trends US economic data was the market driver on Friday night with no fresh geopolitical or tariff-related headlines coming through which moved the dial. US...

• Positive vibes. Equities rise, yields fall. USD loses ground. Favourable US PPI & geopolitical/tariff news support sentiment. AUD & NZD lift.• Tariff news. ‘Reciprocal’ US tariffs in the pipeline. Likely to be formally announced by 1 April. Markets breathe a short-term sigh of relief.• Macro events. US retail sales due tonight. Next week the RBA & RBNZ meet. Rate cuts expected by both, though the RBNZ should be more aggressive. Global Trends There were a few more pockets of headline-driven volatility overnight. But on balance, risk sentiment has been positive with favourable data and geopolitical developments coming through. Equities...