The moves for major FX rates were in small ranges only, with a half big figure lower for USD/JPY the stand out. The pair is still in the range it established on Monday in response to the remarks reported from Bank of Japan Governor Ueda over the weekend.

Data from Japan today showed disappointing core machinery orders. Note though that this is a volatile data set and if markets were bothered by it they wouldn't have sent yen higher on the session. Also note the post on Japanese buying of foreign bonds last week.

News flow was light.

The data focus was the August jobs report from Australia, a massive 64.9K jobs added on the month. The caveats on this were obvious though:

  • the unemployment rate remained unchanged at 3.7% with participation hitting a record high at 69.9%
  • more than 60K of those added jobs were part-time
  • hours worked fell 0.5% on the month and the underemployment rate rose

The caveats took much of the shine of the strong headline result. AUD/USD had traded higher leading into the data release but as I update is slipped back to be barely changed on the session.

The People’s Bank of China leant on the USD/CNY reference rate again (not new news this, they’ve been doing so for weeks).

We await the European Central Bank policy meeting. You’ll recall yesterday we had the ‘leak’ of a rate hike coming due to inflation forecasts being raised. EUR/USD is up small on the session here.

usdyen chart wrap 14 September 2023