Ranges for major FX rates were subdued as Asia-Pacific traders were content to await the US jobs report due at 8.30am US Eastern time.
News flow was very light, as was data flow. We did get another poor data point in the August wages information from Japan. Real wages in August declined for a 17th month in a row. This is important as the Bank of Japan has persistently been emphasising that sustainable wage rises is a prerequisite for deciding whether and how to dismantle its ultra-loose monetary stimulus. Household spending data was down y/y also.
The Reserve Bank of Australia released its latest Financial Stability Review, taking note of a small but rising share of Australian households in the early stages of financial stress.
Asian equity markets:
Japan’s Nikkei 225 -0.25%
China’s Shanghai Composite % … China is on holiday all this week
Hong Kong’s Hang Seng +2.2%
South Korea’s KOSPI +0.3%
Australia’s S&P/ASX 200 +0.7%
NFP coming up later:
- SGD traders heads up - Monetary Authority of Singapore policy statement due October 13
- Japan finance minister Suzuki repeats he has no comment if Japan intervened in FX market
- Tesla has cut prices for some vehicles in the US
- US President Biden to deliver remarks on jobs report Friday at 11:30 am US Eastern time
- China Mineral Resources Group, huge buyer of iron ore, in talks with 4 big suppliers
- Magnitude 6.1 earthquake off Japan east coast - Izu Islands
- RBA - small but rising share of Australian households in early stages of financial stress
- Former BoJ official: BoJ will likely discuss whether to tweak fwd guidance, YCC at meeting
- "De-inverting" yield curve is the new "inverting yield curve" recession warning
- Goldman Sachs on the sharp USD/JPY 'intervention' drop from 150
- Japan August Household spending -2.5% y/y
- Japan data: August inflation adjusted (real) wages fell 2.5% y/y
- Report that US President Biden has begun making plans for personal meeting with China's Xi
- Non-farm payroll previews - still solid jobs market expected
- Czech central banker Kubelkova says inflation may drop near target already in January
- Trump would accept House speakership for a "short period" - Fox reporting
- OPEC could intervene in oil market if prices dip too far
- JP Morgan raised its China GDP forecasts for 2023 and 2024
- Chinese developer Sunac won approval to restructure around US$10bn of debt
- ICYMI - HSBC bump up their GDP forecasts for the UK and the Eurozone
- Forexlive Americas FX news wrap: US dollar gives some back ahead of non-farm payrolls
- Major US indices close today with modest losses
- Trade ideas thread - Friday, 6 October 2023
