The Japanese yen takes center stage amidst a mixed performance by the US dollar. Recent activity suggests Japanese officials intervened in the market following the closure of US equity markets yesterday, selling off dollars as the Asia Pacific session began. This move, coupled with the upcoming closure of Tokyo markets on Friday and Monday, is likely to instill caution among investors.
Meanwhile, Europe's Stoxx 600 is experiencing its third consecutive session of decline, potentially marking the longest losing streak of the year. In contrast, US equity indices are displaying strength.

Asia Pacific markets
Investors are analyzing the implications of what appears to be another round of BOJ sales following the closure of US equity markets. While macro considerations remain unchanged, certain market segments, such as momentum traders and trend followers, may hesitate to challenge Japanese officials without fundamental support. After a post-intervention low on Monday, the greenback dipped to JPY 153 following the closure of the US equity market, only to rebound to nearly JPY 156.30. It has since eased back to JPY 155 during the European morning, where it seems to be attracting new bids.

Elsewhere, Australia's recent economic indicators suggest a potential slowdown in domestic consumption, with retail sales falling unexpectedly in March and a smaller-than-expected trade surplus reported today. The Reserve Bank of Australia's upcoming meeting on May 7 is anticipated to maintain the status quo.
The Australian dollar approached $0.6550 today.

European markets
The UK's local and mayoral elections are underway with minimal immediate market impact.

The euro, recovering from a six-day low, stalled near the Monday-Tuesday high around $1.0735. It has consistently traded above the 20-day moving average for five consecutive sessions.
Sterling also rebounded from a three-day low near $1.2465 to reach $1.2550.

American markets
The Federal Reserve's meeting met expectations, acknowledging a lack of progress on inflation in recent months alongside continued solid economic expansion. Today's reports on non-farm productivity and unit labor costs are derived from Q1 GDP data.

Canada's March goods trade balance will also be reported today. The US dollar retraced about half of its gains against the Canadian dollar from Monday and Tuesday, encountering resistance around CAD 1.3785 and support near CAD 1.3700.