The yen remains the focus after its huge plunge on Tuesday then partial retrace on Wednesday. You’ll recall USD/JPY tested once again towards 145 before being hit with escalated jawboning, most notably from finance minister Suzuki, and then a Bank of Japan ‘rate check’ that prompted thoughts of intervention to come. On Wednesday US time USD/JPY fell back towards 142.50. During the session here it tracked sideways in a broad 142.80/143.20 (and thereabouts) range but moved higher after comments from a senior LDP official (the LDP is the ruling party in Japan) cast doubts on the ability of the Bank of Japan to have any meaningful intervention impact. This may be the truth but it didn’t help prop up the yen, which has been the goal out of Japanese officialdom. USD/JPY has been as high as around 143.50 after the less supportive comments.

On the data front today we had New Zealand Q2 GDP reported well above expected. NZD/USD is higher on the session.

From Australia we had a below expectation (not by much) employment gain and above expectation (again, not by much) unemployment rate. The details of the report were better, and it was not a bad report, just not as good as expected. AUD/USD also gained on the session.

Regional stocks followed up the higher Wall Street close by adding small gains.

Russia is reportedly considering imposing export duties on its coal.

The People’s Bank of China left its medium-term lending facility (MLF) rate unchanged, 400bn of a one-year MLF was issued with 600bn maturing today. Thus a net drain in MLF activity.

usdyen jpy wrap 15 September 2022 a