ForexLive Asia-Pacific FX news wrap: USD/JPY dropped under 140.00

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The
US dollar continued to decline in Asia morning trade, with major FX
higher against the dollar across the board. USD/JPY was notable,
dropping to its lowest since the middle of June to back under 140.00.
EUR, AUD, CAD, CHF, GBP and NZD all rose.
</p><p>Data
from Japan showed wholesale inflation slowed for the 6th straight
month. Producer prices (-0.2%) and import prices (-1.2%) declined in
June. The drops were mostly due to lower commodity prices. These will
likely feed through to an easing of consumer prices in the months
ahead. The Bank of Japan has been telling us, over and over, it
expects cost-push pressures to ease in this way.
</p><p>The
Reserve Bank of New Zealand Monetary Policy Review and official cash
rate (OCR) announcement followed. The Bank left its OCR at 5.5%, as
was basically unanimously expected. While the rate hike cycle in NZ
is over the Bank said it’d be holding the cash rate “at a
restrictive level for the foreseeable future, to ensure that consumer
price inflation returns to the 1 to 3% annual target range, while
supporting maximum sustainable employment”. NZD/USD had a wobble a
touch lower on the announcement but as I post is making new highs for
the session.
</p><p>The
People’s Bank of China once again set the onshore
yuan stronger than expected at the daily reference rate fixing. An
earlier report in China’s Securities Journal said its anticipating
increased fiscal stimulus to help support the economy.</p><p>
Asian
equity markets:</p><ul><li><p>
Japan’s
Nikkei 225 -0.7%</p></li><li><p>
China’s
Shanghai Composite -0.1%</p></li><li><p>
Hong
Kong’s Hang Seng +1.2%</p></li><li><p>
South
Korea’s KOSPI 0.0%</p></li><li><p>
Australia’s
S&amp;P/ASX 200 +0.4%
</p></li></ul><p>NZD higher after the RBNZ:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.