ForexLive Asia-Pacific FX news wrap: USD/JPY fell back under 140.80

• China data this weekend: Will housing prices show signs of stabilization?
• Former New York Fed President Dudley sees a strong case for 50bp interest rate cut
• Pricing for a 50bp FOMC rate cut has firmed in just a few hours, 41% now
• China’s 10 year government bond yield has fallen to a record low of 2.0775%
• Fitch are forecasting a Bank of Japan rates to 1% (by the end of 2026!)
• PBOC sets USD/ CNY reference rate for today at 7.1030 (vs. estimate at 7.1048)
• Gold hit a record high price in Asia trade, above US$2562.65
• Putin warns that lifting Ukraine missile restrictions will put NATO at war with Russia
• Critical data coming for AUD/USD … this weekend! (Spoiler – China data)
• Goldman Sachs see a Bank of England rate cut in November, with a cascade of cuts to follow
• Bank of England to pause rate cuts next week – survey result unanimous
• Peru’s central bank cuts reference rate by 25bps to 5.25%, as expected
• Reports that China set to cut interest rates on more than $5 trln of outstanding mortgages
• New Zealand August Manufacturing PMI 45.8 (prior 44.4)
• Deutsche Bank on what makes this ECB rate cut cycle unusual
• El Erian says “ton of cash” on the sideline helping to limit losses in global bonds
• Wall Street Journal Fed watcher asks on FOMC rate cut next week – Start small or big?
• Forexlive Americas FX news wrap 12 Sep: ECB cuts rates as expected, but the USD falls
• Interactive Brokers will launch US election betting next week
• PIMCO sees US dollar volatility ahead after the Fed begins cutting
• Broader US stock indices up for the fourth consecutive day
• Trade ideas thread – Friday, 13 September, insightful charts, technical analysis, ideas

There
was a sharp surge in pricing for a 50bp Federal Open Market Committee
(FOMC) rate cut at next week’s meeting during the time zone here
today. This helped to lower the US dollar. EUR/USD rose above 1.1090.
Gold rose to a record high above US$2,570.

USD/JPY
was where the main action was though, dropping back towards the lows
of earlier this week. We didn’t have data or news out of Japan.

News
and data flow was light otherwise. I did post on Russia’s Putin
warning the UK and US that they will be at war with Russia if they
allow Ukraine to use long-range missiles to strike targets across the
border. Also, a former New York Federal Reserve President, Bill
Dudley, said he sees a strong case for a 50bp FOMC rate cut at the
September 18 meeting. Dudley had previously called for a cut at the
July meeting.

Coming
up over the weekend we have key economic data published in China, see
bullets above for more on this.

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