After Thursday’s wild moves, especially in yen, major FX in Asia took a bit of a breather. USD/JPY fell back under 142.00 from highs above 142.50 early in the piece. It was a holiday in Japan today and while that doesn’t guarantee a quiet session its what we got today. Japan’s Ministry of Finance would have been on guard for a resurgent USD/JPY but it has not eventuated and so we have not seen any official jawboning nor intervention during the session here.

Elsewhere across major FX there has been a minor US dollar bid pretty much across the board. Eur, AUD, GBP, NZD are all a few points lower but none are troubling technical levels within the tight ranges we have had.

Regional equities have dropped, taking their lead from a lower Wall Street on Thursday.

Oil and gold are a touch softer also.

Data releases were very much lower tier and news flow was light.

On the central bank front, the only point of note was a yet again weaker mid-rate for the onshore yuan from the People’s Bank of China. The Reuters estimate was above 7 but this was not realised, the PBoC holding USD/CNY under that big round number psychological level at the fixing. Market trading of USD/CNY and USD/CNH is above 7 regardless.

offshore yuan cnh 23 September 2022