ForexLive Asia-Pacific FX news wrap: USD/JPY rebounded towards 156.50

• Reserve Bank of Australia Governor Bullock is speaking Wednesday, Sydney morning
• Japan’s transport ministry ordered Toyota, Mazda,Yamaha to suspend some vehicle shipments
• Bank of Japan Governor Ueda says if inflation moves as expected, will adjsut policy
• JPY traders – heads up for BOJ Deputy Governor Ryozo Himino speaking soon
• AUD/USD lower after the soft Australian data
• Japan’s government to warn of weak yen
• Australian data Q1 Business Inventories +1.3% q/q (expected 0.7%)
• PBOC sets USD/ CNY central rate at 7.1083 (vs. estimate at 7.2297)
• Japan fin min Suzuki says intervention late April/early May a response to specualtion
• The risk is the Bank of Canada do not cut rates this week, but wait until July – preview
• Australia Q1 GDP report due Wednesday, expected to remain very weak
• Australian weekly consumer sentiment survey remains very weak
• UK data – May BRC like for like sales +0.4% y/y (prior -4.4%)
• South Korea May Consumer Price Index, core rate slowest rise since December 2021
• RBC on oil and OPEC+, ‘data dependent’
• HSBC hold their Brent oil price assumptions steady after OPEC+ meeting
• Deutsche Bank have upgraded their outlook for Euro Area GDP for 2024 to 0.9% (from 0.4%)
• Here’s a forecast for two more Reserve Bank of Australia rate hikes still to come
• UBS says traders are too cautious on Fed rate cuts, base case is 50bp in 2024
• Forexlive Americas FX news wrap 3 Jun: US dollar moves lower after weaker ISM data.
• Mixed close for US stocks with the Nasdaq higher. The Dow down and the S&P little changed.
• Trade ideas thread – Tuesday, 4 June, insightful charts, technical analysis, ideas

Local
data today showed that South
Korean
consumer inflation slowed
to 10-month low. The
inflation rate dropped more than
expected in May setting up a potential August rate cut.

Australian
data followed not too long after, some ‘partial’ inputs to the Q1 GDP
figures that are due tomorrow. These were mainly disappointing and
point to the possibility that the 0.2% q/q economic growth result
expected will come in even slower. There is not a lot of fat
available here and the chance of a contraction cannot be ruled out.
AUD/USD fell after the data after earlier extending its overnight
gain to nudge 0.6700 (but not quite get there).

EUR,
GBP and CAD all continued to add to their Monday moves, but soon all
gave way to small retracements (very small).

USD/JPY
tracked its own path, of course, falling to just under 156.00 before
recovering 50 points or so (highs were just shy of 156.50). We had
remarks from finance
minister Suzuki,
discussing intervention. Suzuki said the late April/early May intervention curbed speculative behaviour somewhat. A warning on the weak yen came from
Japan’s government in a draft seen of its long-term ‘roadmap’,
which is a
yearly report highlighting
key
administration
policy priorities. The
final version is expected around June
21. Bank
of Japan Governor Ueda spoke, answering questions in parliament (see bullets above).

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