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US President Donald Trump said trade talk negotiators had made “big progress” following a meeting with Japanese representatives in Washington about the barrage of tariffs he has imposed on global imports, per Reuters. 

South Korea BoK Interest Rate Decision meets forecasts (2.75%)

South Korea’s central bank, the Bank of Korea, holds policy rates, as expected

• benchmark
  interest rate held at 2.75%

BoK Governor Rhee Chang-yong will hold a news conference from around around 0210 GMT / 2210 US Eastern time.

This article was written by Eamonn Sheridan at www.forexlive.com.

Singapore Non-oil Domestic Exports (NODX) miss forecasts

+5.4% y/y in March

• expected +14.1%, prior +7.6%

Exports to Taiwan, Indonesia, Hong Kong, Thailand, Japan and South Korea increased y/y

• Exports to China declined.

This article was written by Eamonn Sheridan at www.forexlive.com.

People’s Bank of China USD/CNY reference rate is due around 0115 GMT.

The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.

How the process works:

• Daily midpoint setting: Each morning, the PBOC sets a midpoint for the yuan against a basket of currencies, primarily the US dollar. The central bank takes into account factors such as market supply and demand, economic indicators, and international currency market fluctuations. The midpoint serves as a reference point for that day’s trading.
• The trading band: The PBOC allows the yuan to move within a specified range around the midpoint. The trading band is set at +/- 2%, meaning the yuan could appreciate or depreciate by a maximum of 2% from the midpoint during a single trading day. This range is subject to change by the PBOC based on economic conditions and policy objectives.
• Intervention: If the yuan’s value approaches the limit of the trading band or experiences excessive volatility, the PBOC may intervene in the foreign exchange market by buying or selling the yuan to stabilize its value. This helps maintain a controlled and gradual adjustment of the currency’s value.

This article was written by Eamonn Sheridan at www.forexlive.com.

Japan’s Economy Minister Ryosei Akazawa said early Thursday that the officials agreed to hold a second meeting with the United States this month. 

The NZD/USD pair extends the rally to near 0.5935 during the early Asian trading hours on Thursday. The New Zealand Dollar (NZD) edges slightly higher against the US Dollar (USD) after the hotter inflation data.