Yen weaker in Asia as Kiuchi questions policy, AUD down on Lowe

The yen weakened along with the Aussie in Asia on Thursday on comments from policy makers at both central banks and data in Australia that gave a mixed outlook ahead of a key European Central Bank meeting later in the day.

Australia's trade balance for January reached a deficit of A$980 million, wider than the A$950 million deficit seen, while retail sales for the same month rose 0.4%, matching expectations.

Separately, Reserve Bank Deputy Governor Philip Lowe said Thursday that more support on the monetary policy side may be required, hinting strongly the central bank may cut further from a record low 2.25% cash rate it held steady this month.

Separately, Bank of Japan board member Takahide Kiuchi, who opposed the Oct. 31 further easing, called for looking at shifting policy away from supporting assets like government bonds and the stock market. He called for a review on the feasibility of massive buying of government bonds.

Overnight, the U.S. dollar rose to its highest level against the euro on Wednesday in more than 11 years, ahead of the European Central Bank's announcement on Thursday detailing the start of its €60 billion a month quantitative easing program.

The continuing decline comes on the eve of Thursday's ECB meeting where policymakers are expected to release critical details on a monetary easing program that was passed last month.