- Australia Treasurer Chalmers says that strong commodity prices cannot be relied on to last
- Japan chief cabinet secretary Matsuno ready to take action on FX moves if necessary
- Japan finance minister Suzuki says recent FX moves are somewhat rapid
- China's offshore yuan is weakening even after the 'strong' CNY fix
- Australian Q2 GDP +0.9% q/q (vs. expected +1.0%)
- Bank of Japan says it will increase its buying of JGBs at its regular operations
- PBOC sets USD/ CNY reference rate for today at 6.9160 (vs. estimate at 6.9686)
- China reports 323 new local coronavirus cases in mainland vs 264 a day earlier
- Bitcoin is trading like any other emerging market - UST yields up, BTC smashed
- USD up as US 10 year yield rises to its highest since mid-June
- The estimate for the PBOC USD/CNY mid rate setting today is 6.9686
- Bank of England Governor Bailey will face a hearing in the UK parliament Wednesday
- Japan has boosted its daily arrival cap to 50,000 to help lift the sluggish tourism sector
- Trends are fast, directional and tend to go farther than what traders expect
- Australian August Services PMI rises to 53.3 (prior 51.7)
- Chile central bank rate hike - says now nearing the top for rates
- US electricity crunch - California warning consumers to be prepared for possible outages
- RBNZ Assistant Gov Silk - well placed for wind-down of additional monetary policy tools
- Nomura forecast EUR/USD to 0.9 and GBP/USD to 1.06
- BOC preview - Bank of Canada monetary policy meeting Wednesday, 7 September 2022
- Collapsing yen makes it to the front pages
- Citi bearish cable, targets as low as 1.05 (key support 1.1410 for now)
- Trade ideas thread - Wednesday, 7 September 2022
- New UK PM Truss caves in to the EU over trade rules
- Forexlive Americas FX news wrap: ISM services beats; bonds busted
- NASDAQ closes lower for the 7th straight day
The
yen was smashed in Tuesday trade, with highs above 143.00 during US
trade. In early Asia on Wednesday the losses extended, USD/JPY rising to above
143.50. Japanese authorities hardened their rhetoric a touch during
the session with statements from both finance minister Suzuki and
chief cabinet secretary Matsuno, notably that they would not tolerate
‘one-sided’ moves. The impact was barely noticeable, USD/JPY has
maintained above 143 and is on approach to 143.50 143.70 again as I post.
As a bit of a detour I posted this back in June that should help going forward:
What to watch for warn of imminent Bank of Japan intervention in the yen.
Also attempting to slow a currency drop, the People’s Bank of China set the largest ever gap between the reference rate estimate of USD/CNY and the actual setting; the estimate was 6.9686 while the reference rate was 6.9160. If there is a ‘gap’ between the actual and the estimate its read a signal from the PBOC. This was the eleventh day in a row the Bank had set the CNY stronger than the estimate. So far they have not managed to halt the decline in the onshore yuan despite such persistent signalling.
Of course the weak yuan and yen are indicative of a very strong USD just about across the FX board.
Also notably lower against the USD today were oil prices, gold, and Bitcoin.
USD/JPY:
