Key points:
- ICYMI China SASAC calls for advancement of major projects aligned with national priorities
- China is building megaports in South America to feed its need for crops
- BoJ Dep Gov Uchida says there is upside & downside risk from US tariffs on Japan’s prices
- Australian April business confidence -1 (prior -4)
- PBOC sets USD/ CNY central rate at 7.1991 (vs. estimate at 7.2180)
- Japan finance minister Kato wants to discuss FX with Bessent
- Australia Westpac Consumer Sentiment (May 2025) +2.2% (prior -6.0%)
- BoJ April Summary shows uncertainty a high priority discussion item
- China’s foreign minister meets Brazil counterpart in Beijing
- “The Trump Put is alive and well” says BofA after US – China trade ceasefire boosts stocks
- U.S. Trade Representative Greer: If things don’t work out, China tariffs can go back up
- UK April consumer spending shows its biggest increase since June 2023
- Deutsche sees first Fed cut in December despite trade relief
- Citi trims near-term gold target, sees consolidation at $3,000–$3,300/oz
- ICYMI – Citi forecasts a July Federal Reserve rate cut instead of in June
- Forexlive Americas FX news wrap: Massive across the board on trade war relief
- Trump’s Hassett says there are 24 countries lined up for trade talks over the next weeks
- Goldman Sachs expect a Federal Reserve rate cut now in December, instead of in July
- US stocks close sharply higher on US China tariff news
- Trade ideas thread – Tuesday, 13 May, insightful charts, technical analysis, ideas
After Monday’s sharp swings, Asia markets settled into a more subdued session on Tuesday.
The Japanese yen found some relief, rebounding from early highs above 148.40 to around 147.75. The move was spurred by comments from Japan’s Finance Minister Kato, who said he hopes to speak with U.S. Treasury Secretary Bessent on FX matters during the upcoming G7 meetings in Banff, Canada (May 20–22). The remarks were seen as a subtle warning about the yen’s recent weakness and a possible prelude to verbal intervention.
Earlier in the session, the Bank of Japan released its “Summary of Opinions” from the April 30–May 1 policy meeting, with members emphasizing heightened uncertainty—particularly around U.S. trade policy. The tone underscored the Bank’s cautious stance, suggesting limited scope for near-term action until global developments stabilise. Since then, the U.S.-China trade talks have yielded a modest tariff rollback and a 90-day pause in new measures.
BoJ Deputy Governor Uchida echoed the theme of uncertainty in separate remarks, but reiterated that the Bank still expects to raise rates gradually if the economy and inflation evolve as forecast.
In China, the yuan strengthened after the People’s Bank of China set the daily USD/CNY reference rate below 7.2 for the first time since April 7, signalling support for currency stability amid easing trade tensions.
Australian data offered a slightly improved but still cautious tone. Consumer confidence edged higher from previous lows, while business confidence ticked up modestly. Business conditions, however, slipped on the month.
Elsewhere in FX, major currency pairs excluding the yen traded in tight ranges.
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