USD/JPY traded above 147.85 to a 10-month high today before dipping back under 147.60. While we had verbal intervention out of Japan’s Ministry of Fi
USD/JPY
traded above 147.85 to a 10-month high today before dipping back
under 147.60. While we had verbal intervention out of Japan’s
Ministry of Finance on Wednesday, so far today there has been
nothing.
Also
from Japan was a speech from Bank of Japan monetary policy board
member Nakagawa. She showed no indication in her remarks of a desire
to dial back easy policy.
Data
from Australia today showed exports dipped in July from June while
imports rose. The trade surplus came in lower than expected.
Data
from China portrayed another poor trade performance in August. The
external sector is not coming to China’s economic rescue so far. In
USD terms both exports and imports for the month slumped again (see
bullets above) and are down YTD also. If there is a bright spot in the August data its that exports and imports did not fall by as much expected.
Earlier
in the session we had the PBOC USD/CNY reference rate setting for the
trading session. The Bank set the mid-rate another 1100+ points lower
than the modelled estimate (ie stronger for the onshore yuan). The
PBOC continues to stand in the way of rapid yuan weakening. Offshore
yuan didn’t do a lot today, trading in a small band, for it.
Major
FX traded in narrow ranges today, the USD largely held gains.
Regional
stocks traded lower following a weak lead from Wall Street.
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