ForexLive Asia-Pacific FX news wrap: Wide swings again for the yen

• More RBA Gov Bullock – don’t see interest rates coming down quickly
• New Zealand 2-year inflation expectations have dropped to 2.03% (prior2.3%)
• AUD/USD maintaining its session highs after RBA Governor Bullock hawkish again
• RBA Governor Bullock: Don’t expect to be back in 2-3% target range until end of 2025
• Japan finance minister Suzuki says no comment on BOJ Uchida’s remarks
• Goldman Sachs say a stock market plunge could reduce US GDP growth, hit Fed policy
• PBOC sets USD/ CNY reference rate for today at 7.1460 (vs. estimate at 7.1821)
• US oil output rose to record high last week
• Federal Reserve unlikely to pivot more dovish, USD seen supported
• BOJ Summary – one monetary policy board member suggested the neutral rate is at least 1%
• Japan data – June Current Account surplus smaller than expected, shrinks from May
• Swiss business lobby urges Swiss National Bank to act fast against franc (CHF) strength
• Iran may be rethinking launching a multi-pronged attack on Israel, US officials say
• “US not in a recession, despite the Sahm Rule indicator bearing my name saying that it is”
• Yen & Nikkei traders alert warning – more coming from the Bank of Japan today!
• JP Morgan Dimon says odds of a “soft landing” are around 35% to 40%, recession more likely
• Trade ideas thread – Thursday, 8 August, insightful charts, technical analysis, ideas
• Forexlive Americas FX news wrap: Soft bond auction helps to reverse risk trade

Yen
swings continued again today in a wide range. Lows were around 145.45
and highs 146.85. The Bank of Japan published its ‘Summary’ of
the July 30 – 31 meeting, sounding a little more hawkish than was
indicated in the statement on the day. In stocks, the Nikkei net
gained on the day. Dips in the yen (higher USD/JPY and yen crosses)
helped equities.

AUD/USD
gained on the session. As I post its sitting around its session high.
Reserve Bank of Australia Governor Bullock spoke, with hawkish
comments again (similar to those earlier this week).

NZD/USD
also gained, but has since given much of this back. The Reserve Bank
of New Zealand published their inflation expectations survey. The
critical 2-year expectation dropped back to barely above 2%. The Bank
meets on August 14, and while an ‘on-hold’ decision is widely
expected those looking for a rate cut next week had their hopes
bolstered by this data today.

From
China we saw large state banks selling large quantities of 7 year
bonds. This appears indicative of Chinese authorities stepping up
their actions against a record debt rally. State banks sold 10-years
earlier in the week.

AUD holding its ground on the day:

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