USD/JPY is trading back above 133.20 as I update after lows during the session circa 132.62. Apart from the yen, major FX traded in very small ranges in Asia post-CPI data in the US on Wednesday. What movement we did have was in the form of continued retraces of the sharp USD weakness witnessed after the data. A market holiday in Japan thinned out trading a little. When Japan is closed physical US bond trading in the APac region grinds to a halt. This does not always result in lacklustre forex moves but today it was quiet indeed.

Onshore yuan (CNY) was set by the People’s Bank of China at its strongest reference rate (lower USD/CNY) for a month.

News flow was light. US President Biden’s administration indicated it was not ready to scrap any China tariffs for now. China’s coronavirus situation worsened, again. The city of Yiwu, which is plays an important role in Chinese manufacturing and export is going full lockdown. For 3 days. We’ve heard ‘3 days’ many times in the past and it often stretches for months. For the folks in that city lets hope not this time,

Data flow was light. Singapore GDP contract q/q in Q2. Australian consumer inflation expectations declined a little on the month.

usdyen 11 August 2022 wrap chart