ForexLive Asia-Pacific FX news wrap: Trump tells Powell he should cut interest rate

• ECB speakers Thursday include Lagarde, Lane, Knot and Holzmann
• FT: Nvidia (NVDA) to spend ‘hundreds of billions’ making chips in the US in next 4 years
• Bank of Canada Governor Tiff Macklem is speaking on Thursday
• Trump says the Fed should cut rate as tariffs hit the economy
• Foxconn’s AI Server Boom Set to Overtake iPhone Revenue
• The yen has moved higher on today’s Japanese market holiday
• Fed Faces Uncertainty as Stagflation Concerns Emerge
• PBOC sets USD/ CNY reference rate for today at 7.1754 (vs. estimate at 7.2402)
• People’s Bank of China sets its Loan Prime Rates (LPR) unchanged, as expected
• AUD marked down on a very disappointing jobs report – employment 80K lower than expected
• Australia Feb 2025 unemployment rate 4.1% (vs. 4.1% expected) & Employment Change -52.8K
• Australian labour market report due soon – resilience to continue?
• Swiss National Bank expected to cut rates 25bp on Thursday, March 20, 2025 – preview
• ICYMI: Big fees on China ships has US exporters struggling to send goods abroad
• Cryptocurrency exchange Kraken is nearing a US$1.5 billion deal for NinjaTrader
• “A political Federal Reserve risks weakening the US dollar’s reserve status”
• BOJ on hold, TD sees offshore factors as the primary driver for USD/JPY
• B2BINPAY, Athletic Club Release Exclusive Video Presenting Crypto Payments for Sports Fans
• ICYMI – UBS sees the slide for Nvidia as creating attractive entry buy point
• Brasil’s central bank has raised its benchmark interest rate to 14.25%, from 13.25%
• New Zealand’s economy has exited recession, GDP grows 0.7% q/q
• Financial Times front page has a downbeat view of Wednesday’s FOMC outcome
• Federal Reserve projections have a somewhat ‘stagflationary’ feel says Goldman Sachs.
• Forexlive Americas FX news wrap 19 Mar: Fed keeps rates unchanged. See two cuts in 2025
• Trade ideas thread – Thursday, 20 March, insightful charts, technical analysis, ideas

Asian markets saw a mix of currency movements on Thursday, with the yen continuing to strengthen despite thin liquidity due to a holiday in Japan. USD/JPY fell to just below 148.20, while EUR/JPY dipped under 161.75. However, the yen gave up some of its gains following a social media post from former U.S. President Donald Trump, in which he urged the Federal Reserve to cut interest rates as tariffs begin to weigh on the economy.

In New Zealand, economic data showed the country emerging from its mid-2024 recession, with a solid 0.7% quarter-on-quarter GDP growth in the December period. The New Zealand dollar saw a brief lift but ultimately faded, tracking declines in the Australian dollar after a weak labour market report. Australia lost more than 50,000 jobs in February, and the participation rate fell from its record high of 67.2% in January to 66.8%. This prevented the unemployment rate from rising, which remained at 4.1% (dropping slightly to 4.05% when taken to two decimal places). The data strengthens the case for potential Reserve Bank of Australia rate cuts, though it remains only one month of figures. The AUD softened following the release.

Meanwhile, the People’s Bank of China kept its 1- and 5-year Loan Prime Rates (LPRs) steady at 3.1% and 3.6%, marking the fifth consecutive month without easing. Despite ongoing expectations of further stimulus, the central bank has held firm since its last rate cut in September. Analysts continue to anticipate policy support, but the lack of movement suggests the PBOC remains cautious in balancing growth and financial (yuan) stability.

EUR/JPY update:

This article was written by Eamonn Sheridan at www.forexlive.com.