Yen is mildly higher after BoJ left monetary policies unchanged as widely expected. Interest rate was held at -0.1% and the target of monetary base expansion was kept at JPY 80T per annum. The central bank noted in the statement that economy "continues to recover moderately as a trend" but warned that pick-up in exports paused on slowing global growth. Meanwhile, inflation expectations has been "weakening recently". There are talks that the downgrade of economic assessment was an act to pave the way for further easing in the second quarter. Also from Japan, industrial production rose 3.7% mom in January while tertiary industry index rose 1.5% mom.
RBA noted in the minutes noted that "Continued low inflation would provide scope to ease policy further, should that be appropriate to lend support to demand." And, "there appeared to be more uncertainty about the direction and potency of monetary policy in the major jurisdictions". Nonetheless, the central bank acknowledged that "labour market had clearly improved since early 2015" and "leading indicators of employment had increased further and were consistent with employment growth in the months ahead."
Looking ahead, Eurozone employment is the only feature in European session. US calendar is quite busy today. Retail sales, PPI, Empire state manufacturing index, NAHB housing market index and business inventories will be released. But main focus will stay on tomorrow's FOMC announcement.