ForexLive Asia-Pacific FX news wrap: USD edges higher still

<ul><li><a href="https://www.forexlive.com/news/morgan-stanley-cuts-china-2023-gdp-growth-forecast-to-47-from-50-20230817/">Morgan Stanley cuts China 2023 GDP growth forecast to 4.7% (from 5.0%)</a></li><li><a href="https://www.forexlive.com/centralbank/further-chinese-intervention-to-prop-up-the-yuan-state-banks-usdcny-sellers-20230817/">Further Chinese intervention to prop up the yuan: State banks USD/CNY sellers</a></li><li><a href="https://www.forexlive.com/news/audusd-marked-lower-after-the-poor-employment-report-is-there-a-caveat-though-20230817/">AUD/USD marked lower after the poor employment report – is there a caveat though?</a></li><li><a href="https://www.forexlive.com/news/australia-july-jobs-146k-vs-15k-expected-jobless-rate-37-vs-35-exp-20230817/">Australia July Jobs -14.6K (vs. +15K expected) &amp; Jobless rate 3.7% (vs. 3.5% exp)</a></li><li><a href="https://www.forexlive.com/news/hong-kongs-hang-seng-index-to-open-nearly-2-lower-today-down-20-from-january-high-20230817/">Hong Kong's Hang Seng index to open nearly 2% lower today, down 20% from January high</a></li><li><a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-central-rate-at-72076-vs-estimate-at-73047-20230817/">PBOC sets USD/ CNY central rate at 7.2076 (vs. estimate at 7.3047)</a></li><li><a href="https://www.forexlive.com/centralbank/hsbc-highlight-two-continuing-headwinds-thatll-drive-the-chinese-yuan-even-lower-20230817/">HSBC highlight two continuing headwinds that'll drive the Chinese yuan even lower</a></li><li><a href="https://www.forexlive.com/news/singapore-july-exports-slump-nodx-down-20-yy-20230817/">Singapore July exports slump, NODX down 20% y/y</a></li><li><a href="https://www.forexlive.com/news/japans-july-exports-03-yy-expected-08-imports-135-yy-expected-147-20230816/">Japan's July exports -0.3% y/y (expected -0.8%) &amp; Imports -13.5% y/y (expected -14.7%)</a></li><li><a href="https://www.forexlive.com/centralbank/rbnz-orr-says-banks-cash-rate-projections-for-next-2-years-deviate-little-from-55-20230816/">RBNZ Orr says Bank's cash rate projections for next 2 years deviate little from 5.5%</a></li><li><a href="https://www.forexlive.com/centralbank/barclays-on-whats-driving-yen-selling-spoiler-carry-trade-and-an-intervention-warning-20230816/">Barclays on what's driving yen selling (spoiler: carry trade). And an intervention warning</a></li><li><a href="https://www.forexlive.com/news/new-zealand-ppi-data-for-q2-20230816/">New Zealand PPI data for Q2: Small index movement only</a></li><li><a href="https://www.forexlive.com/Cryptocurrency/coinbase-has-been-given-approval-to-operate-a-futures-trading-service-20230816/">Coinbase has been given approval to operate a futures trading service</a></li><li><a href="https://www.forexlive.com/centralbank/jp-morgan-mulls-corporate-power-higher-cpi-requires-central-banks-re-start-hiking-cycle-20230816/">JP Morgan mulls corporate power, higher CPI, requires central banks re-start hiking cycle</a></li><li><a href="https://www.forexlive.com/centralbank/morgan-stanley-says-fed-reserve-chair-powell-will-keep-his-options-open-at-jackson-hole-20230816/">Morgan Stanley says Fed Reserve Chair Powell will keep his options open at Jackson Hole</a></li><li><a href="https://www.forexlive.com/news/us-mortgages-could-hit-8-says-realtor-economist-20230816/">US mortgages could hit 8% says Realtor economist</a></li><li><a href="https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-16-aug-the-usd-moves-higher-as-data-remains-strong-20230816/">Forexlive Americas FX news wrap 16 Aug: The USD moves higher as data remains strong.</a></li><li><a href="https://www.forexlive.com/centralbank/rbnz-governor-orr-says-he-is-confident-that-inflation-pressure-is-lessening-20230816/">RBNZ Governor Orr says he is confident that inflation pressure is lessening</a></li><li><a href="https://www.forexlive.com/news/a-nasty-close-for-the-us-stocks-20230816/">A nasty close for the US stocks</a></li><li><a href="https://www.forexlive.com/news/trade-ideas-thread-thursday-17-august-2023-20230816/">Trade ideas thread – Thursday, 17 August 2023</a></li></ul><p>
China
was once again a focus with Hong Kong’s Hang Seng index plunging
again, on approach to 20% down from its high in January this year.
After falling circa 2% it has found support and as I post its only
down around 1% on the day. Rumours are circulating that Chinese
authorities have told funds and banks not to sell stocks. While I
haven’t confirmed this information at this stage such instructions
are not unusual at all in China. It’s a one-party state and the
Chinese Communist Party is very accustomed to getting its way. Of
course, bullying investors is only a short-term solution and really
only locks in deeper malaise over time.</p><p>The People's Bank of China set the USD/CNY reference rate nearly 10 big figures under the estimated (modelled) rate, its most aggressive setting divergence in this episode of yuan weakness so far and a sign the Bank want to slow the descent of the currency. </p><p>Apart
from China, the other notable event was the July jobs report from
Australia. This was a poor one, with 24K full time job losses and the
unemployment rate climbing to 3.7% vs. 3.5% expected. The Australian
Bureau of Statistics warned of holiday-time distortion in the data
(see bullets above) but headlines are headlines for a reason and
AUD/USD was marked lower immediately on the job loss and unemployment
rate numbers. At its session low it was down around 60+ points on the
day. NZD/USD is lower alongside.
</p><p>EUR
and GBP are lower against the USD also. A little more hawkish tone
from the FOMC minutes publicised on Wednesday saw UST yields rise
further here in the region and thus weigh on ‘risk’. USD/JPY ticked higher, popping above 146.50 at one stage and is just under there as I update.</p><p>Asian
equity markets:</p><ul><li><p>
Japan’s
Nikkei 225 -0.9%</p></li><li><p>
China’s
Shanghai Composite -0.2%</p></li><li><p>
Hong
Kong’s Hang Seng -0.9%</p></li><li><p>
South
Korea’s KOSPI -0.6%</p></li><li><p>
Australia’s
S&amp;P/ASX 200 -0.9%
</p></li></ul>

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