ForexLive Asia-Pacific FX news wrap: Little movement across major FX rates

• Bank of Japan bought the smallest amount of JGBs in January since June last year
• Xi Jinping urges acceleration of new productive forces
• European Central Bank’s Lane and Centeno are speaking on Thursday
• Bank of England Monetary Policy Committee meeting today – preview
• The US House approved a bill to further child tax credit, extend some business tax credits
• China Vice Finance Minister says fiscal spending, policy will help expand domestic demand
• China Caixin Manufacturing PMI for January 50.8 (expected 50.6)
• PBOC sets USD/ CNY reference rate for today at 7.1049 (vs. estimate at 7.1802)
• CBA on inflation and Reserve Bank of Australia – RBA to revise their inflation forecasts
• Japan business lobby head agrees with unions on need for wage hike
• Japan data – Jibun Bank Manufacturing PMI (final) for January 2024 48.0 (prev 48.0)
• Australian data, December building permits -9.5% m/m (expected +1.1%)
• Goldman Sachs are now forecasting the first Fed rate cut in May, from March prior
• Fitch responds to the FOMC and Powell – “we don’t see rate cuts until June or July”
• News filtering in of a fresh round of US strikes on Houthi targets in Yemen – unconfirmed
• JP Morgan forecast the first FOMC rate cut in June, but are wavering on perhaps May
• BoA says Powell hoodwinked the markets – all fooled by ‘Maradona Theory of Interest Rates’
• A warning that the Federal Reserve could be forced hike rates, not cut
• Australia Final January Manufacturing PMI 50.1 (prior 47.8) – with a warning on inflation
• UK authorities seized 61,000 BTC (around US$1.8bn) re investment scam operated in China
• Trade ideas thread – Thursday, 1 February, insightful charts, technical analysis, ideas
• Stocks tumble as Powell tells markets that March is not the base case for cuts.
• Forexlive Americas FX news wrap: Fed holds. The market shows it’s hanging on each headline

After
the swings in post-FOMC trade overnight some follow through was
expected in Asia but its been subdued.

Major
forex rates are little net changed after very small ranges. Chinese
equities are up a little on the mainland and up a little more in Hong
Kong.

The
focus for the session was on the Caixin
survey of
China’s
manufacturing
activity. The
PMI came in at an expansionary 50.8, equalling the December result
and above the expected 50.6. It
expanded for a third month in January, extending divergence with
official data, which
is showing persistent contraction (the National Bureau of Statistics
(NBS) manufacturing PMI has been in contraction for nine of the past
ten months).