USD/JPY dropped a little lower during the session with Asia morning lows just under 135.20. Its not much above there as I update.

Across major FX movement was subdued, especially following the huge shunt higher for the US dollar in Tuesday trade. AUD/USD popped above 0.6800 in a small range. NZD, GBP are also up a few ticks against the dollar. EUR/USD is barely changed on the day.

The People’s Bank of China weakened the onshore yuan at the reference rate setting today, much weaker (i.e. higher USD/CNY) than was expected.

Oil recovered a few dollars but has since dropped back to circa $100 again.

Data flow was non-existent. News flow was light also.

The Shanghai Composite slipped. COVID cases in China are rising a little, triggering some (light at this stage) restrictions.

Oil update:

oil wrap chart 06 July 2022