- Chinese state media says the PBOC may cut banks' RRR earlier than expected
- Toyota production halt now at 14 plants in Japan - 'system glitch'
- Japan's govmt says the country may be at an inflection point in its battle with deflation
- CryptoQuant data shows that Bitcoin trading volume is at its lowest in more than 4 years
- PBOC sets USD/ CNY mid-point today at 7.1851 (vs. estimate at 7.2854)
- Oil - China weekly flights are 13% above pre-COVID levels
- PBOC is expected to set the USD/CNY reference rate at 7.2854 – Reuters estimate
- RBA’s own staff could be signalling low faith in durably hitting the Bank's CPI target
- UK inflation indicator at a 10 month low
- Australia data - ANZ Roy Morgan weekly consumer confidence 78.1 (prior 79.0)
- Japan data - July unemployment rate 2.7% (expected 2.5%)
- US equities - Goldman Sachs says the tech sector is not going up for the right reasons
- Bank of America still look for 1 more Fed rate hike, +25bp in November (75bp cuts in 2024)
- ANZ is looking for downside in EUR/USD this week, GBP more favoured on crosses
- UBS on China's latest supportive policy:- "we see reason for optimism" (and a weaker yuan)
- Goldman Sachs forecast USD/JPY to 155 if the BOJ maintains its dovish stance
- Federal Reserve policy rates have likely peaked, first cut only likely middle of 2024
- RBA Deputy Governor Michele Bullock speaking Tuesday: "Climate Change and Central Banks"
- ICYMI - Sweden's Riksbank Deputy Governor said SEK is 20% undervalued
- Australian LNG workers strike - rolling stoppages, bans and limitations
- ICYMI - China Fin Min Kun asked for efforts to further implement proactive fiscal policy
- The head of banking supervision at the San Francisco Federal Reserve to retire
- Trade ideas thread - Tuesday, 29 August 2023
- US equity close: Nice start to the week
- Forexlive Americas FX news wrap: A holiday in the UK keeps a wrap on FX
It was a day of minor movement only for major forex rates. AUD, NZD, EUR, GBP and even the hapless yen all gained a few points against the USD. Ranges were lacklustre though and such moves can be easily reversed as European liquidity arrives.
News flow of market relevance was very light, and data releases were lower-tier only. Japanese unemployment ticked up but remains at a very low level.
Regional equity markets traded higher following on from the better session on Wall Street.
Asian equity markets:
Japan’s Nikkei 225 +0.17%
China’s Shanghai Composite +0.6%
Hong Kong’s Hang Seng +1.7%
South Korea’s KOSPI +0.4%
Australia’s S&P/ASX 200 +0.4%
The People's Bank of China once again set the yuan reference rate 10 big figures away from the modelled estimate, supporting the local currency.
Offshore yuan:
