Ranges for major FX rates were subdued as Asia-Pacific traders were content to await the US jobs report due at 8.30am US Eastern time.

News flow was very light, as was data flow. We did get another poor data point in the August wages information from Japan. Real wages in August declined for a 17th month in a row. This is important as the Bank of Japan has persistently been emphasising that sustainable wage rises is a prerequisite for deciding whether and how to dismantle its ultra-loose monetary stimulus. Household spending data was down y/y also.

The Reserve Bank of Australia released its latest Financial Stability Review, taking note of a small but rising share of Australian households in the early stages of financial stress.

Asian equity markets:

  • Japan’s Nikkei 225 -0.25%

  • China’s Shanghai Composite % … China is on holiday all this week

  • Hong Kong’s Hang Seng +2.2%

  • South Korea’s KOSPI +0.3%

  • Australia’s S&P/ASX 200 +0.7%

NFP coming up later:

non farm payroll preview 06 October 2023