Forex Today: AUD bears regain poise post-RBA minutes, UK CPI, ZEW eyed

Forex today in Asia experienced a volatile session, with mixed market sentiment amid cautious RBA minutes and negative Asian equity markets, curbing the demand for the higher-yielding currencies such as the Antipodeans.

Amongst the Asia-pac currencies, the Kiwi emerged the biggest loser, despite upbeat Westpac consumer confidence data, as the renewed broad-based USD buying accelerated the slide. Meanwhile, the USD/JPY pair tracked the gains in Treasury yields, as markets have already priced-in a 25 bps Fed rate hike this week. 

Main topics in Asia

Sonny Perdue: tariff disputes threaten US exports - Reuters

Reuters is out with comments from the US Secretary of Agriculture Sonny Perdue, who says that US agricultural exports are exposed to risk from retaliation over Trump's tariffs.

Trump to hit China with $60 billion tariffs by Friday - Washington Post

President Trump is set to unveil this Friday a package of $60 billion in annual tariffs against Chinese products, according to Washington Post. 

RBA Minutes: High household debt levels warrant careful attention

The minutes of the Reserve Bank of Australia (RBA) March meeting expressed concerns regarding the household debt and stressed the need for faster wage growth. 

Trade talks dominate G20 finance meeting - Reuters

The G20 finance leaders’ summit taking place in Buenos Aires this week sees tensions over Trump's trade tariffs in plain view, as financial leaders from around the world plead for an endorsement of free trade from the US.

Japan’s Seko: Japan could be exempted from US tariffs on steel, aluminum

Japanese Trade Minister Hiroshige Seko was reported by Reuters earlier today, as saying that the government sees a high possibility that Japan would be exempted from the US tariffs on steel and aluminum on a per-item basis.

China’s Li: A trade war would not benefit anyone

Additional headlines cross the wires, via Reuters, from the Chinese Premier Li, as he continues to speak at the end of the National People’s Congress (NPC).

Japan FinMin Official: The recent movement in the Yen has been too volatile

Bloomberg reports comments from a Japanese Finance Ministry official attending the G20 meeting in Buenos Aires, as saying that the recent movement in the Yen has been too volatile.

Key Focus ahead

Markets gear up for an action-packed EUR calendar ahead, with the Swiss macro news/ forecasts to be published alongside the German trade figures pre-Europe open while the UK CPI and PPI data will be reported at 0930 GMT followed by the releases of the German and Eurozone ZEW economic surveys at 1000 GMT. In the NA session, we have no macro updates from the US docket and hence, all eyes will remain on the NZ GDT price index and Eurozone consumer confidence data for some trading impetus. Also, of note remains G20 meetings and FOMC 2-day meeting, which commences later on Tuesday.

EUR/USD: German ZEW to provide a leg up ahead of FOMC?

Before the Fed introduces a rate increase on Wednesday, the EUR/USD will be seeing Germany's ZEW surveys at 10:00 GMT today. Economic activity within the EU has slowed somewhat for the first quarter of 2018 …

GBP/USD: On the front foot ahead of UK CPI release

The bulls seem to have regained control and will likely push the GBP/USD pair to 1.41 if the UK February core CPI betters estimate of 2.5 percent year-on-year. The data is scheduled for release at 09:30 GMT.

UK CPI to fall back in February – Capital Economics

Analysts at Capital Economics are out with their thoughts on what to expect from today’s UK CPI report due to be published at 0930 GMT.

Will GBP/USD rise to re-test highs on Brexit transition deal and BoE?

For GBP/USD, developments surrounding the Brexit deal and Bank of England decision will not be the only potential volatility triggers.