Forex news for Asia trading Wednesday 10 January 2018

There were further gains for the yen during the session here today but little in the way of fresh impactful news nor data for it. Further follow through on the BOJ JGB buy 'trim' news yesterday was cited, further unwinding of the very large (some say extreme) short yen positions, USD/JPY stops triggering below the overnight low were all cited as factors for the yen gains here today.

Those traders countering the move (looking for the USD/JPY to trade back up) point to higher US Treasury yields, the Bank of Japan still undershooting its inflation target (by a long way) and thus remaining committed to yield curve control and other very accommodative policy, along with the risk positive backdrop.

But, a win for the yen bulls today (and as a heads-up ps - there are further USD/JPY sell stop orders below 112.00 ... and as a counter ... real money bids are ahead of there).

CHF and GBP are little changed expect against the yen, natch .... see above ;-) )

EUR/USD has managed a small gain through the session, above 1.1945 at one stage. No fresh news nor data. AUD/USD slid early but is back a tickle (technical term) to the better on the session. NZD/USD ... ditto.

US/CAD is a little lower, CAD taking some heart from a higher oil price (which got a kick along at the end of the US day from the data showing a very large draw in oil inventory for the week past).

Eyes were once again on China and the People's Bank of China. The Bank weakened (slashed) the CNY against the USD at its daily reference rate setting by the most since September last year. On money markets the PBOC conducted OMOs today after skipping operations for 12 days in row. The injection today of 120bn yuan was balanced by reverse repos coming due today of an offsetting 120bn yuan. Zero net injection/drain then.