Asia Summary and Highlights 17 Mar
The RBA March meeting hike rates to 4.1% on a 5-4 vote
BOJ’s Ueda says inflation rising toward 2% ahead of policy meeting
Asia Session
The RBA March meeting hike rates to 4.1% on a 5-4 vote, citing rising underlying inflation since H2 2025 and the latest oil spike. The hike was widely anticipated after Huaser's comment earlier in the week and the spilt vote confirms RBA's dynamic appraoch towards rate. The Aussie didn't see it as a hawkish surprise given the uncertain outlook and lack of revision in rate expectations. We could still only see one more hike in 2026 if the geopolitical tension is solved soon. AUD/USD is trading 0.17% lower at 0.7059. NZD/USD is trading 0.73% lower while USD/CAD rises 0.08%.
BOJ’s Ueda says inflation rising toward 2% ahead of policy meeting. The details are their usual rhetoric but the note on sustainable inflation from wage growth, seems to be downplaying any distant possibility the BoJ will hike to counter input pressure from oil spile. USD/JPY continues its slow grind towards 160 and is trading 0.24% higher at 159.44. Else, EUR/USD is down 0.3% and GBP/USD is down 0.31%.
European and North American sessions
The USD lost some ground as oil corrected off highs above $100 and equities advanced. EUR/USD picked up to 1.1520 from 1.1420. USD/JPY losses were more moderate, to near 158 from 159.60 seeing EUR/JPY above 183 from a low below 182 while EUR/CHF advanced to .9065 from .9035. EUR/GBP gains were marginal, with GBP/USD reaching 1.3340 from 1.3240.
AUD/USD reached .7075 from .70 while USD/CAD slipped to 1.3680 from 1.3715. USD/CAD losses briefly corrected after February Canadian CPI came in lower than expected at 1.8% from 2.3%. US data had limited impact, March’s Empire State manufacturing survey slipping to -0.2 from 7.1, February industrial production rising a modest 0.2% and March’s NAHB homebuilders’ index at 38 from 37.