The yen was once again a focus. USD/JPY fell early in the session, dropping under 143.00 and chopping in a tight range under the figure. We had remarks from Japanese finance minister Suzuki, the usual attempts at talking the yen up. But the yen once again fell in response to such comments, USD/JPY climbing back to touch 143.50.

Elsewhere it was a mixed bag for FX against the dollar. EUR, AUD, NZD & GBP all traded on the bid side against the big dollar but the moves have been largely traced to leave us with very little net change on the session.

The offshore yuan, CNH, consolidated. USD/CNH spent much of the session trading north of 7.02. The People’s Bank of China set the reference rate for onshore yuan at its weakest (i.e. USD/CNY at its highest) since August 18 of 2020. Data from China today showed better than expected for August retail sales, industrial production, and the unemployment rate.

usdyen wrap chart 16 September 2022

Reserve Bank of Australia Governor Lowe appeared in committee at the Australian parliament. His comments gave some indications of a 50bp rate hike coming up at the October 4 RBA policy meeting, but there were also indications it could be just 25bp. A bit wishy-washy. National Australia Bank revised their forecast for the October meeting to +50 from its prior call of +25.

Speaking of central bank forecasts, ANZ in New Zealand have changed their RBNZ forecast to an OCR peak at 4.75% (previously 4%), with 25bp hikes added to their profile in February, April, and May next year.