Forexlive Asia-pacific FX news wrap 27 Jun – Intervention risks brewing

It’s been a very quiet session on the Asia-Pac side with very little notable news releases or fundamental news.

The biggest focus for markets have been the continued weakness in the JPY which saw the USDJPY trade very close to the 161 level, but has since backed off the highs.

Looking at the price action across major asset classes is worth keeping in mind that messy price action is what we would expect in weeks where we have quarter-end flows in the mix.

When we see the type of flows we have so far this week without any meaningful fundamental catalyst, it means we need to take what we see with a pinch of salt.

Be careful out there.

• Risk sentiment pretty mixed as Asia-Pac comes to a close
• Goldman likes med-term USD upside ahead of the US election
• Crédit Agricole on what a labour victory means for Sterling
• Today’s economic calendar
• Japan Chief Cabinet Secretary says won’t comment on FX levels
• Japan’s Suzuki saying watching FX moves with a high sense of urgency
• PBoC injects 100 billion Yuan via 7-day repos
• China industrial profits YY 3.4% vs 4.3% prior
• PBOC sets USD/ CNY reference rate for today at 7.1270 (vs. estimate at 7.2765)
• New Zealand Business Outlook 6.1 vs 11.2 prior
• PBOC is expected to set the USD/CNY reference rate at 7.2765
• JPY strength picking up a bit during Asia-Pac so far
• Japan retail sales YY 3.0% vs 2.0% expected
• Scotia thinks the June BoC cut was a policy mistake
• Consumer discretionary and comms on sectors in the green today
• Commodities had a mixed day overall with platinum soaring while natgas wet the bed
• The USD and AUD the leaders while JPY and NZD the laggards
• Tesla led the charge for the mag 7 with Google down but close to flat
• North Korea says it has successfully conducted important test in missile technology
• USDJPY flirting with 161 with intervention watch in overdrive
• Fed stress tests says banks reported higher losses than in 2023 tests

This article was written by Arno V Venter at www.forexlive.com.