- Gas supplies via Nord Stream from Russia to Europe have been temporarily suspended - zero
- Japan PM Kishida to raise the upper limit for entrants into Japan to 50,000 a day Sep. 7
- China's official PMIs for August were a mixed bag - AUD little changed
- BOJ's Nakagawa says the Bank must continue easing
- China August Manufacturing PMI 49.4 (exp 49.2) & Non-manufacturing 52.6 (exp 52.2)
- Australian data - July Private Sector Credit +0.7%
- Australian data: Q2 Construction work done -3.8% q/q (expected 0.9%)
- PBOC sets USD/ CNY central rate at 6.8906 (vs. estimate at 6.9106)
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- New Zealand business confidence in August -47.8% vs. prior -56.7%
- Reports on TSMC to embark on a surge of semiconductor production. But not until 2024.
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- Yuan rate setting coming soon - eyes on the PBOC holding the line on the CNY
- Japan data: Preliminary July Industrial production +1.0 % m/m (expected -0.5%)
- South Korea will end pre-departure COVID test requirement for international arrivals
- TD like short CHF against yen, target is 136
- ICYMI - Gazprom says it will halt gas supplies to France's Engie
- UK business confidence shows a sharp drop on the month (Lloyds business barometer)
- UK shop price inflation jumps higher in August: +5.1% (previous +4.4%)
- SKorea July data: Industrial output, retail sales down m/m. Service sector output higher.
- Elon Musk tweets on Tesla. Yes, really!
- New Zealand data - July building permits +5% m/m (prior -2.3%)
- China COVID update - areas of key port cities shunted back into lockdown
- ECB have flicked the switch firmly to hawkish - more restrictive, faster rate hikes ahead
- There were a whole bunch of Federal Reserve speakers on Tuesday - all focused on inflation
- Nomura is looking for AUD to trade higher against EUR and GBP
- Forexlive Americas FX news wrap: JOLTs job openings rise sharply
- Uk government moving to fast-track nuclear power projects due to energy crisis
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- Private oil survey shows headline build in inventory
- Former President of the Soviet Union, Mikhail Gorbachev has died
- US major indices close lower for the 3rd consecutive day
The focus of the session today was on the August PMIs from China’s National Bureau of Statistics. These came in not too far from expectations. Both manufacturing and non-manufacturing beat the median estimate but manufacturing did remain in contraction.
Still on data, another notable set of results came in from Japan, industrial production and retail sales both beat m/m.
On the central bank front we had a speech reported from Bank of Japan policy board member Nakagawa. Unsurprisingly she reiterated the Bank needed to keep its loose monetary policy. Nakagawa added that the Bank will decide how to proceed on the remaining pandemic-relief programme at its September meeting. She noted the Bank is considering the impact of the pandemic on financial conditions.
Still on central banks, the PBoC cut the CNY at the daily reference rate setting today, but again did so by less than was estimated. That is, the PBoC are not devaluing the onshore yuan as much as estimates indicate. The CNY rate was its weakest (ie. strongest for USD/CNY) since late August of 2020.
USD/JPY dropped a little on the session, the move came after the better economic data release. It has not had a large move.
There were only small moves also across other major rates.
Offshore yuan added on a few points during the session: