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Tokyo CPI highlights Asian trade. Australian and New Zealand on holiday

Eamonn is off today because it's a holiday in Australia and New Zealand so I'll be sitting in for Asian trade.

The main data highlight comes at 0030 GMT (8:30 am in Tokyo) with the release of April Tokyo CPI for April. Excluding fresh food, it's expected to rise to 3.2% y/y, which should provide some cover for a further BOJ hike but at the moment the market is pricing in just 15 bps in hikes through year end.

    The other event to watch is at the top of the hour (5 pm ET) when the Fed's Kashkari will speak. We've heard from him already this week so it's highly unlikely to be market moving.

    What I'll be primarily watching for is whether Asia sells the US dollar and buys gold today. In US trading we saw a drop in yields but the dollar was sold anyway.

    For more, see the economic calendar.

    This article was written by Adam Button at www.forexlive.com.

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