Forex news for Asia trading on Friday 17th September 2021

USD/JPY has ticked a little higher here on the session, towards 109.90 and the big round number at 110 (... again!). There was no impactful news flow nor data. A flow out of safe-haven refuge is usually the obvious narrative for a bout of yen weakness but that doesn't really cut it today. EUR, AUD, NZD, GBP, CAD ... all are basically flat.

It was a busy session for developments in China though, still falling are:

  • Evergrande fixed interest issues
  • Evergrande equities
  • iron ore
  • home-builder Fantasia (downgraded ... contagion from Evergrande woes?)

On the other hand the yuan is on a rip. As measured against its trade-weighted basket the yuan hit its highest since 9 March 2016 (TWI via China's China Foreign Exchange Trade System (CFETS)). Against the USD the CNY was ramped up 197 points today at the daily onshore (CNY) setting, to its strongest since August 9. Meanwhile, the People's Bank of China injected 90bn yuan (net) for the day (and for the week) in a move it says is to keep liquidity stable towards quarter-end. Coming up next week is the National holiday and after that the longer holiday, October 1-7, for Golden Week. Liquidity provision for these is also a factor in today's injection (as a not-so-side note 50bn of the cash input was done via a 14-day reverse repo open market operation, the first time the 14-dayer has been used since February this year).

USD/JPY on approach to the big round number of 110 ... for the umpteenth time...

Forex news for Asia trading onFriday17thSeptember 2021