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:

usdcnh 31 August 2022 wrap