- NZD traders - heads up for the dairy auction due during London time, 20 September 2022
- Japan govmt junior coalition partner are concerend about the weak yen
- FOMC forecast, +75bp hike but high inflation means +100bp is a risk,
- Australian budget deficit to be circa A$50bn smaller than forecast
- Japan fin min Suzuki speaking ahead of the Bank of Japan meeting
- The PBoC has left its lending benchmarks LPRs unchanged, as expected
- RBA September meeting minutes say again that case for rate rises to slow as OCR rises
- PBOC sets USD/ CNY central rate at 6.9468 (vs. estimate at 6.9483)
- China Loan Prime Rates (LPR) 1 year 3.65% (prior 3.65%) & 5 year 4.30% (prior 4.30%)
- Japan's 20-Year JGB yield rises to 0.96%, the highest since January 2016
- The delayed Bank of England policy meeting is on Thursday 22 September 2022
- US equity indexes extend gains, USD drops further
- ICYMI: US to sell 10 mn bbls of oil from strategic petroleum reserve, delivery in November
- Australia consumer confidence weekly survey rises by 0.4% w/w
- Japan August Headline CPI 3.0% (expected & prior 2.6%)
- Danske see further topside still for USD/CNY
- AUD traders: heads up for RBA Sept meeting minutes due today. Tuesday, 20 September 2022
- German utilities are reported as being close to long-term LNG deals with Qatar
- Goldman Sachs preview the Bank of Japan meeting (spoiler, no change expected)
- Cryptocurrency news - Coinbase announce a new fee structure (service for fewer $)
- Forexlive Americas FX news wrap: US dollar gives back all its gains
- World Bank President says global economic slowdown may persist well in 2023
- Trade ideas thread - Tuesday, 20 September 2022
- US stocks close higher and near session highs. Erase earlier declines
The two items of note during the timezone here today were the Japanese inflation figures for August and the People’s Bank of China’s setting of the 1- and 5-year Loan Prime Rates (LPR).
Japanese inflation came in on the upside, mainly higher than expected but at subdued levels when compared to other developed markets around the globe. The Bank of Japan policy meeting is this week, the statement is due on Thursday 22 September. While core CPI has risen for 5 months in a row in Japan (rising energy prices and the weaker yen are playing an important role in this movement, and for August there were higher mobile charges as discounting diminished) ‘core-core’ CPI in the country (that excluding food and energy and the closest to the US measure of core CPI) remains below 2%. The BOJ is expected to remain on hold this week. USD/JPY is barely net changed on the session, although it did dip under 143.00 earlier.
To China, and the LPR settings. These remain unchanged, as was widely forecast.
Across major FX there was a slump for the USD in early trade with EUR, AUD, GBP, NZD, yen, CHF and CAD all rising. These moves have been mainly reversed though. NZD/USD has fallen back under 0.5950 but is, as I update, above its overnight low.
