It was a relatively small range for most major forex rates. The Chinese yuan maintained its recent relative strength, and indeed the onshore yuan reference rate was set at its highest since late in September. We also heard from People's Bank of China Governor Pan Gongsheng on the currency, saying that China will resolutely guard against overshooting risks of the yuan exchange rate. If you’ve been following along with the USD/CNY reference rate setting each day you’ll know the PBOC is already doing this. He added that the yuan will be basically stable, reasonable and balanced. On the economy and policy he said he expects China will achieve its annual GDP growth target of 5% this year and that the Bank will maintain prudent monetary policy to revive real economic growth. On debt levels in China he said authorities will provide emergency funding to heavily indebted local governments as needed.

While on central banks, Bank of Japan Governor Kazuo Ueda said volatile currency moves were among the side effects the central bank was scrutinizing in maintaining its bond yield curve control (YCC) policy, in the wake of the yen's declines against the dollar once again (highs circa 150.60 were seen today). On policy ahead, Ueda said the Bank won’t necessarily need to wait until real wages turn positive for exiting YCC and negative rates. He outlined he’d need to see confirmation on whether the pass-through of import price rises dissipate, and if the wage-inflation cycle kicks off as the Bank expects, as conditions that need to be met to end YCC and negative rates.

The Reserve Bank of New Zealand’s survey of inflation expectations showed these falling to their lowest in 2 years. NZD/USD has tracked a little higher during the session, it’s an outperformer albeit in a not large range,

Oil retraced a little after its sharp drop on Tuesday, but only a little. This was despite the privately surveyed oil inventory data released late in the US afternoon showing a huge headline build. There is chatter that the number was leaked early, contributing to the oil price slump.

Offshore yuan, hourly candles:

usdcnh wrap chart 08 November 2023