ForexLive Asia-Pacific FX news wrap: JPY active again

• More from RBA Governor Bullock: Level of demand for goods and services higher than supply
• RBA’s Bullock says as of now Board doesn’t expect to cut rates in near term
• China’s Xi, at China-Africa Summit: China is willing to unilaterally expand market access.
• The PBOC and China’s FX regulator will hold a press conference in a few hours time
• US’ Rubin says while US economy still has momentum it has slowed some
• BoJ Takata says Japan’s economy is recovering moderately, though some weak signs
• Australian July Trade Balance is a surplus of AUD 6.009bn (expected 5.15bn)
• PBOC sets USD/ CNY central rate at 7.0989 (vs. estimate at 7.1010)
• Fed’s Daly says need to cut rates because economy slowing, inflation falling
• Japanese rising real wages data keeps the BOJ on track for a Q4 interest rate hike
• “Overlooked green shoots” for China – improving growth seen ahead
• Argentina province creates its own currency, the chaco
• Japan July wages data – Inflation adjusted wages +0.4% y/y
• Goldman Sachs NFP preview, say that August payrolls often have a negative bias initially
• Goldman Sachs:”market correction may start to get traction if payrolls are weak on Friday”
• Reserve Bank (RBA) Governor Michele Bullock speaks soon on “The Costs of High Inflation”
• US President Biden is scheduled to speak on economic policy on Thursday
• TD see signs of hope for oil price bounce – says peak algo selling appears to have passed
• “Persistent” inflation in the US is on the rise – argues against a 50bp FOMC Sep rate cut
• Forexlive Americas FX news wrap 4 Sep: Concerns about job weakness sends the USD lower
• Citi says Brent crude oil could fall as low as $50 / barrel
• Oil: private survey of inventory shows a headline crude oil draw much larger than expected
• A mix day for US stocks in up and down session
• Trade ideas thread – Thursday, 5 September, insightful charts, technical analysis, ideas

Yen
crosses once again led the volatility. USD/JPY fell in the early
hours to lows under 143.25, continuing on Wednesday losses. We had
data out of Japan that helped JPY gain ground, with (July) real wages
rising for a second consecutive month. Real wages in Japan turned
positive for the first time in 27 months in June. July followed up
with another rise.

USD/JPY
managed to bounce, though, retracing to cover all of its Asian time
losses and its around 143.70+ as I post this wrap-up.

Also
from Japan today were comments from Bank of Japan Board Member
Takata. His comments were extensive (covered in the post linked
above) but, in short, he said the Bank
will continue to dial
back decades of easy policy settings if the
data on
economic developments develop
in line with its forecasts.

A
speech from Reserve Bank of Australia Governor Bullock barely nudged
the AUD. Governor Bullock said
bringing inflation down to the target band of 2-3% remains the
central bank’s highest priority. Bullock
emphasised her less-than dovish current stance by saying that “If
the economy evolves broadly as anticipated, the board does not expect
that it will be in a position to cut rates in the near term”.
Bullock
speaks again later (at 0900 GMT, 0500 US Eastern time) in a
pre-recorded ‘Fireside Chat’ at the Women in Banking &
Finance Awards.

Apart
from yen crosses major FX traded in very narrow ranges.

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