- Japan is relaxing COVID related border controls
- Citi forecast UK inflation will rise above 18% in 2023
- Yuan continues its slide - USD/CNH circa 6.87
- Australian government news - hundreds of senior appointments may be audited
- Chinese government special loan only enough to deal with around 1/3 of uncompleted homes
- PBOC sets USD/ CNY central rate at 6.8523 (vs. estimate at 6.8538)
- JP Morgan are expecting another "outsized" Federal Reserve rate hike in September
- Japan August preliminary (flash) Manufacturing PMI 51.0 (vs. prior 52.1)
- South Korea's FX authority says it will monitor for herd-like behaviours in the FX market
- Year-end forecast for NZD/USD lowered to 0.67 ( from 0.71)
- EUR/USD forecast to 0.95
- Australia weekly consumer confidence up again this week, highest since early June
- Australia August preliminary (flash) Manufacturing PMI 54.5 (vs. prior 55.7)
- Société Générale are looking at today's German PMI to cement EUR/USD under parity
- Chinese state-controlled financial media speculating on PBOC RRR cut soon
- Two proprietary indicators from Goldman Sachs have analysts there wary on equities
- The reason behind the mistaken Saudi oil comment headlines (TL;DR - the Saudis are angry)
- South Korea inflation expectations 12 months ahead have fallen to 4.3% (from 4.7%)
- EUR/CHF forecast to 0.93 (Swiss National Bank to hike rates in September and December)
- Trade ideas thread - Tuesday, 23 August 2022
- US stocks close sharply lower.
- Forexlive Americas FX news wrap: Euro falls to the lowest in 19 years
USD/JPY was a mover. The pair rose briefly to above 137.70 before giving it all back, and some, to lows circa 137.10. The only data release we had from Japan today were the flash PMIs for August. Services and Composite dipped back into contraction. In news from Japan the government indicated it’d be trimming back on COVID-related border controls, without offering details not a timeline.
Eyes are on EUR/USD with it now below parity. There was no follow through in Asia, it sat more or less sideways for the session. Its not unusual for AsiaFX to lack the firepower to do much with it.
AUD, NZD, CAD all ticked up a little against the USD.
South Korea’s central bank, the Bank of Korea, said it monitoring speculative activity in the won more closely. The won has lost ground against the rampant US dollar and lost further in early morning trade. The BoK statement halted its losses. For now at least.
Regional equities fell following the losses in the US on Monday. Chinese stocks did take some confidence from the PBoC’s move to underpin mortgages with a 200bn yuan fund (see bullets above).
Oil inched higher during the session after its rise on Monday following the Saudi headlines (check out the previous session wrap for more detail).
USD/KRW:
