- Japan's Nikkei asks "Is Japan's deflation era ending?"
- Japan chief cabinet secretary Matsuno verbal yen intervention crossing the newswires
- China financial media front page opinion piece - PBOC might cut its RRR in Q4
- Bank of England preview - headline inflation lowest in 18 months makes rate hike 50/50
- ANZ analysts says China is showing 'early signs' of economic stabilization
- PBOC sets USD/CNY reference rate for today at 7.1730 (vs. estimate at 7.3052)
- The US dollar index has hit its highest since early in March
- LNG: Australia industrial arbitrator says Chevron, Unions close to achieving agreements
- JP Morgan on FOMC - Even with more hawkish dots, still comfortable thinking hiking is over
- Lower than expected UK CPI data, Bank of England policy decision today now close to 50/50
- Australian LNG strikes - still no agreement between Chevron and Unions
- New Zealand Q2 GDP rises more strongly than expected
- Japan's PM Kishida says economic package will include measures to counter inflation
- Former RBA Governor says changes to be made at the Bank are a disaster, "very bad policy"
- TD sees a US government shutdown as inevitable: when, not if
- Vanguard says the Federal Open Market Committee (FOMC) may need to hike rates 3 more times
- At least 2 US analysts have raised their S&P 500 forecast to 4600. Don't worry, be happy.
- Goldman Sachs has raised its Brent oil forecast to US$100
- Forexlive Americas FX news wrap 20 Sep: Fed keeps steady but shifts to higher for longer
- Russia considering additional tax on export of metals, fertilisers, some other commodities
- Hedge fund CEO Jeffrey Gundlach says this is one of the best Fed decisions in a while
- Trade ideas thread - Thursday, 21 September 2023 - Higher for longer edition
Today’s Asia session followed the Federal Open Market Committee (FOMC) on Wednesday in the US where the Fed Funds target was held steady but the updated dots from the Committee guided higher rates for a longer period of time. US yields surged, and along with that the US dollar. Those moves continued here.
USD/JPY gained further, to above 148.40 and its highest since November last year. The yield on two-year U.S. Treasury notes rose to a 17-year high, further widening the gap with Japanese yields and helping drive the USD/JPY move. The US 10-year yield hit a 16-year high.
We had some verbal intervention out of Japan, Chief Cabinet Secretary Matsuno said no options would be ruled out. USD/JPY dribbled down to under 148.30 as I update, i.e. not much.
China wasn’t spared, with USD/yuan rising. At the reference rate fixing for the onshore yuan, the People’s Bank of China sat heavily, again, on the USD/CNY, with a gap of 1300+ points between the modelled central rate and the Bank’s setting. The gap was the widest on record as the Bank seeks to halt the fall of the yuan (successfully, so far, to be fair).
From New Zealand today we had Q2 GDP data come in higher than expectations. In the data was also a revision to Q1 GDP, raised to zero % change q/q from its prior negative result. This has the implication that the New Zealand economy didn’t have a recession after all. Those into archaeology and ancient history take note.
NZD/USD fell further on the session after a minor pop on the data. As I post the rate is on its lows of the session, as is AUD, EUR, GBP, and CAD against the big dollar. The US dollar index it at its highest since early March of this year.
As an aside, for the energy folks, it appears an end is in sight for the LNG dispute here in Australia between Chevron and Unions. Australia’s industrial arbitrator says a tentative agreement has been reached and has given the opposing parties until 9 a.m. Sydney time on Friday to advise of their acceptance or rejection.
Asian equity markets ... as you'd expect, ugly:
Japan’s Nikkei 225 -1.1%
China’s Shanghai Composite -0.4%
Hong Kong’s Hang Seng -1.1%
South Korea’s KOSPI -1.1%
Australia’s S&P/ASX 200 -1.1%
USD index:
