Mild Defensive Feel Creeps In, Asian Central Banks Draw Attention

Most G10 pairs have held tight ranges in early Asia-Pac, albeit a mild cautious feel has manifested itself in selling pressure, which hit Antipodean/JPY crosses. Both AUD/JPY and NZD/JPY have edged lower in sync with a downtick in U.S. e-mini futures ahead of the reopening of Chinese markets after a long weekend.

• AUD/JPY is testing yesterday's low as we type, while NZD/JPY already sits below levels which limited its losses on Tuesday. The Antipodeans have landed at the bottom of the G10 pile.
• USD/JPY overnight implied volatility jumped to its highest point since Jul 28 and last sits at 10.66%, with participants awaiting the next monetary policy decision from Japanese policymakers.
• BoJ MonPol decision, PBOC LPR fixing and plenty of RBA speak headline the Asia-Pac economic docket, with FOMC monetary policy set to steal the limelight later in the day.