ForexLive Asia-Pacific FX news wrap: USD/JPY falls back under 149.00

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<font color="#000000"><font face="Calibri, sans-serif"><font size="3"><span lang="en-AU">There
were small-scale swings across much of major FX during the session
but the notable move was a lower USD/JPY. </span></font></font></font>
</p>
<p><font color="#000000"><font face="Calibri, sans-serif"><font size="3"><span lang="en-AU">Data
from Japan was for the October Corporate Services Price Index (i.e.
Services PPI), which rose 2.3% y/y vs. the +2.1% that was expected.
This data point is not normally too much of a yen mover but it had an
outsized impact today. The details revealed a lift in labour costs.
You’ll recall that the Bank of Japan is eyeing Spring wage
negotiations for signs of inflation pressure being sustained by
demand-pull factors such as rising pay. If the Bank is convinced rising wages will support stable and sustainable inflation at or above its
2% target then the Bank can pivot away from negative rates. I think
it’s a stretch to say that's what today’s data is showing, but I
concede it does go part of the way. Regardless of what I think or
concede though, the move into yen today is suggestive of the market
now paying heightened attention to any signs of wage growth. </span></font></font></font>
</p>
<p><font color="#000000"><font face="Calibri, sans-serif"><font size="3"><span lang="en-AU">In
other news:</span></font></font></font></p>
<ul><li><font color="#000000"><font face="Calibri, sans-serif"><font><span lang="en-AU">Profits
at China’s industrial companies rose at a much slower pace in
October than in September </span></font></font></font><font color="#000000"><font face="Calibri, sans-serif"><font><span lang="en-AU">(YTD
is still negative)</span></font></font></font><font color="#000000"><font face="Calibri, sans-serif"><font><span lang="en-AU">.
The rise is welcome but the pace indicates that China’s economic
recovery remains fragile.</span></font></font></font></li><li><font color="#000000"><font face="Calibri, sans-serif"><font><span lang="en-AU">China
noted multiple central government departments pledge to support
private enterprises' growth, including the People’s Bank of China. </span></font></font></font>
</li><li><font color="#000000"><font face="Calibri, sans-serif"><span lang="en-AU">China’s
health authorities said the surge in mycoplasma-caused pneumonia in
children shows signs of ebbing, warned that other respiratory
illnesses are likely to hit during winter, and that the current
outbreak is not caused by a novel virus</span></font></font></li><li><font color="#000000"><font face="Calibri, sans-serif"><span lang="en-AU">Joe
Biden will not attend the Cop28 climate meeting in Dubai</span></font></font></li><li><font color="#000000"><font face="Calibri, sans-serif"><span lang="en-AU">A
US Navy intervened in a pirate attack on a tanker in Middle East
waters, arresting the hijackers. The US ship came under missile
attack after its action but shot down the inbound projectiles before
damage was done.</span></font></font></li><li><font color="#000000"><font face="Calibri, sans-serif"><font><span lang="en-AU">The<span>re
was an exchange of Hamas-held hostages for prisoners over the
weekend. </span></span></font></font></font>
</li></ul>

<br><p><br></p><figure data-media-><img src="https://images.forexlive.com/images/usdyen%20wrap%20chart%20Monday%2C%2027%20November%202023_id_aa44cdad-8089-45f2-b8aa-e0d26856a9eb_size900.jpg" alt="usdyen wrap chart Monday, 27 November 2023" width="1071" height="730" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/usdyen%20wrap%20chart%20Monday%2C%2027%20November%202023_id_aa44cdad-8089-45f2-b8aa-e0d26856a9eb_size900.jpg" /></figure><p><br></p><p><br></p><p><br></p>

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