Japan / yen:
- Japan's Kanda says concerned about sharp one-sided FX moves that negatively impact economy
- Japan's Matsuno says rapid FX moves are undesirable
- Japan October final manufacturing PMI 48.7 (preliminary was 48.5)
- "BoJ will leave interest rates on hold until Q2 2024 at the earliest"
- USD/JPY a little lower after verbal intervention from Japan - Suzuki, Kanda
- Japan's Mr Yen Kanda says concerned about one-sided sharp FX moves
- Japan finance minister Suzuki has no comment on the weak yen
Other:
- US ISM Manufacturing PMI due Wednesday - range of estimates (Also ADP employment)
- SNB's Jordan is speaking on Wednesday
- China's October Caixin Manufacturing PMI 49.5 (vs. 50.8 expected)
- PBOC sets USD/ CNY reference rate for today at 7.1778 (vs. estimate at 7.3327)
- Australian Building Approvals for September: -4.6% m/m (expected +1.3%)
- RBNZ's Hawkesby speaking on financial stability, China, jobs
- IMF tells the RBA to hike interest rates higher, and hold 'em high for longer
- ECB's Muller says inflation will continue to fall over the coming two years
- China says it will set up a system to resolve its local government debt risks
- Australian final manufacturing PMI for October: 48.2 (prior 48.7)
- New Zealand Q3 unemployment rate 3.9% (vs. 3.9% expected)
- JP Morgan says full impact of Federal Reserve rate hikes still to hit
- Forexlive Americas FX news wrap 31 Oct: One more day for the Fed decision. Goodbye Oct.
- US Sec State Blinken arrives in Israel on Friday, to meet PM Netanyahu, other officials
- Oil - private survey of inventory shows headline crude build near what was expected
- Trade ideas thread - Wednesday, 1 November 2023
USD/JPY pulled back from highs around 151.70 late in the US afternoon, dragged down by some verbal intervention from Japanese officials: Finance Ministry's Vice Finance Minister for International Affairs Kanda, Finance Minister Suzuki, and Chief Cabinet Secretary Matsuno. Kanda ramped up the rhetoric with more forceful language, speaking of:
- One-sided, sharp moves
- Speculative moves
- Disorderly moves
- Won't rule out any steps to respond
USD/JPY has dribbled down to lows under 151.20 as I post.
AUD and NZD initially lost ground against the USD but both have since retraced to be very little changed on the session. NZD/USD lost ground after the Q3 employment report showed wage gains below median estimates while the unemployment rate rose from the previous report for Q2. It was nevertheless not a large range for the Kiwi $. The Reserve Bank of New Zealand released its latest Financial Stability Report, and held a press conference after. There were no new major comments on the outlook for monetary policy.
We had S&P Global manufacturing PMIs for October today from Australia, Japan, and China. The Australian and Japanese PMIs remained in contraction while the one from China fell into contraction from expansion in September.
