ForexLive Asia-Pacific FX news wrap: Awaiting the FOMC (yen gained)

  • US FCC Commissioner Brendan Carr to visit Taiwan November 2 -4
  • BOJ Kuroda says weakening yen negative for Japan’s economy
  • Nomura looking for USD/yuan to 7.5 by the end of November
  • China EV maker NIO says its halted production at two factories due to COVID restrictions
  • China securities official says opening markets is good for China
  • BOJ Kuroda says don’t think USD strength will last indefinitely
  • Japan fin min Suzuki: desirable for FX to move stably, stable yen weakening also s problem
  • PBoC Governor Yi says China that inflation remains subdued
  • More from BOJ Kuroda – recent yen weakness excessive, one-sided, undesirable
  • PBOC sets USD/ CNY central rate at 7.2197 (vs. estimate at 7.2344)
  • BOJ Kuroda: Inflation impact from rising import prices likely to start diminishing in 2023
  • USD/JPY drops swiftly from 148
  • Australian data – September Building permits -5.8% m/m (expected -7%)
  • PBOC is expected to set the USD/CNY reference rate at 7.2344 – Reuters estimate
  • BoC Macklem, more: Will be a difficult move to 2% inflation, don’t want to minimize
  • Japan finance minister Suzuki says FX rates are set by the market
  • North Korea fires another ballistic missile – reports from various sources
  • BOJ Sep meeting minutes – concerns weak yen could hurt households, small firms, services
  • Oil inventory data showed a large draw (even with SPR) – oil up
  • CAD is barely responding to Bank of Canada Governor Macklem comments
  • South Korea inflation data for October. Core CPI rises its fastest since December 2008.
  • BoC Macklem – more: Inflation measures have stopped rising rapidly but not yet dropped
  • BOC Macklem says expects to hike rates even further
  • RBNZ’s Hawkesby says strong jobs market, rising rates will impact
  • NZD/USD minor gyrations after the jobs report: wage growth as expected
  • New Zealand Q3 unemployment rate 3.3% (vs. 3.2% expected)
  • Forexlive Americas FX news wrap: US dollar jumps on JOLTS
  • Australian manufacturing PMI for October falls into contraction, 49.6
  • Oil – private survey of inventory shows a large draw vs. the small build expected
  • Morgan Stanley Fed (FOMC) preview: recommend remaining long USD against EUR, GBP, and CAD
  • AirBNB beat on the top and bottom line, but stock moves lower
  • Stocks close lower for the 2nd consecutive day
  • RBNZ highlights challenges ahead for households, firms re higher interest rates

USD lost some ground during the Asia session. EUR, GBP, AUD, and NZD all
headed a little higher against the big dollar.

big move though was in USD/JPY, which dropped from highs above 148.35
(brief highs there) down to test under 147.20 (also briefly). There
was a barrage of comments from Japan’s Finance Minister Suzuki and
Bank of Japan Governor Kuroda during the fall. There was also market
speculation of some, limited, actual USD/JPY selling intervention to
give the fall a nudge along.

data the focus was on the New Zealand Q3 employment report. The
unemployment rate was unchanged from Q2. A key item in the report was wage gains. While the q/q Labour Cost Index moderated to
+1.1% from +1.3% previously the y/y hit +3.8%, from
+3.4% in Q2. This is the last piece of critical data from New Zealand
ahead of the Reserve Bank of New Zealand meeting, November 23. ANZ
argued that the y/y jump in wages reinforced their view that the RBNZ
will hike the OCR 75bp at the November meeting, with more hikes to

geopolitical news North Korea fired an estimated 10 missiles today,
one of which landed less than 60 kilometres off South Korea’s coast.
This is the first time a test missile has landed near the South’s waters.
In response, South
Korea launched three
Korea’s missiles were fired towards the maritime border separating
the two countries, into waters north of the line. The exact line of
this border is disputed, of course.

I update Chinese & Hong Kong stocks have added to yesterday’s
gains. Governor of the People’s Bank of China spoke at an event in
Hong Kong. Yi Gang (in summary) said the rate of China’s potential
economic growth will be within a reasonable range, and that the
currency will remain at a reasonable and balanced level. On the
beleaguered property sector he said real estate sales are showing a
recent marginal improvement.

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