ForexLive Asia-Pacific FX news wrap: Awaiting the Reserve Bank of Australia
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It
was a subdued session following on from an active Monday in the US.
Yields are an important driver for the higher USD against other major
FX and indeed the dollar remained bid here, albeit in limited ranges.
</p><p>USD/JPY
ticked a little higher still, up towards 149.90 but still shying away
from the 150 round number level. Japan finance minister Suzuki was
out with the usual sort of verbal intervention on the pair. While his
comments were pretty much more of the same and are somewhat hollow
the pair did hold under 150 (as I post) so perhaps Suzuki gets some
credit for that.
</p><p>Federal
Reserve Bank of Cleveland President Loretta Mester spoke on her
economic outlook before the 50 Club of Cleveland Monthly Meeting,
saying that she expects one more Federal Open Market Committee (FOMC)
rate hike this year. Mester has been persistently hawkish, but did
dial it back a little today in the rest of her comments.
</p><p>Data
from New Zealand and Australia was non-impactful, both the NZD and
AUD dribbled lower but local data are not drivers to the extent that
US moves are.
</p><p>The
Reserve Bank of Australia is still to come, the Bank is expected to
leave its cash rate on hold at 4.1% but skew hawkish in Governor
Bullock’s Statement. Previews (more are linked in these posts below):</p><ul><li><a href="https://www.forexlive.com/centralbank/rba-policy-announcement-due-tuesday-3-october-2023-preview-20231003/" target="_self">RBA policy announcement due Tuesday, 3 October 2023 – preview</a></li><li><a href="https://www.forexlive.com/centralbank/rba-policy-decision-due-tuesday-3-october-2023-sydney-time-a-certain-hold-20231002/" target="_self">RBA policy decision due Tuesday, 3 October 2023 (Sydney time) – "a certain hold"</a></li></ul><p>
Asian
equity markets:</p><ul><li><p>
Japan’s
Nikkei 225 -0.6%</p></li><li><p>
China’s
Shanghai Composite 0% … China is on holidays all this week</p></li><li><p>
Hong
Kong’s Hang Seng -3% … reopened
today after holiday Monday</p></li><li><p>
South
Korea’s KOSPI 0% … closed for a holiday</p></li><li><p>
Australia’s
S&P/ASX 200 -1%
</p></li></ul><p>USD/JPY continues to knock on the door at 150</p>
This article was written by Eamonn Sheridan at www.forexlive.com.
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