ForexLive Asia-Pacific FX news wrap: USD/JPY loses a little ground

Bloomberg: China Weighs Removing Major Homebuying Curbs to Boost DemandFederal Reserve Bank of Philadelphia President Harker speaking on FridayChina's electricity consumption rose 8.9% year on year in AugustRBA meting next week - preview - to leave the cash rate on hold at 4.35%Bank of Japan leaves rates unchanged, as widely expectedEuropean Central Bank President Lagarde speaking FridayReports of China state banks buying USD/CNYNew Zealand PM Luxon says constrained by limited fiscal spaceBank of Canada Governor Tiff Macklem will speak on AI on FridayPBOC sets USD/ CNY reference rate for today at 7.0644 (vs. estimate at 7.0637)China leaves 1- and 5-year Loan Prime Rates (LPR) unchangedBank of England Monetary Policy Committee member Mann speaking FridayICYMI - China's state planner promises more stimulus (describes as 'incremental')Japan data - August CPI Headline +3.0% y/y (vs. 3.0% expected)UK consumer confidence September: -20 (vs. -13 expected). Lowest since March 2024.CBA shifts expected RBA rate cut timing to December 2024 (from November)AUD/USD support: RBA on hold with strong jobs market, sticky CPI; Fed policy divergenceBlackRock is wary of the Federal Reserve 50bp rate cut, watch the word "recalibration"UBS forecasting many more Federal Reserve rate cuts, forecast S&P 500 to 6200More info - Goldman Sachs sees Fed cutting by 25 bps at each meeting until June next yearICYMI: US Treas Sec Yellen said the Fed rate cut is 'very positive sign' for economyForexlive Americas FX news wrap: Dollar softer as the market digests the Fed decisionMajor US stock indices close sharply higher helped by foreign buying after Fed rate cutTrade ideas thread - Friday, 20 September, insightful charts, technical analysis, ideasThe3 main focal points of the session were Japanese inflation data andpolicy decisions from the People’s Bank of China and Bank of Japan.TheAugust core CPI in Japan (prices excluding fresh food) rose 2.8% y/y,up from 2.7% in July for its fourth straight month ofacceleration. This is encouraging news for the Bank of Japan. Laterin the session brought the BoJ policy decision. The Bank left shortterm rates unchanged, as was widely expected. USD/JPYtraded a little lower on the session, touching 142.00 after the BoJannouncement.Still to come from the Bank, Governor Ueda will hold a newsconference at 0630 GMT (0230 US Eastern time).Theother notable event of the session was the People’s Bank of Chinasetting its Loan Prime Rates (LPR). There were expectations (notunanimous) that the Bank would cut these. The 50bp rate cut from theUS Federal Reserve mid-week was seen as giving the PBoC a little morepolicy flexibility. However, the Bank left both the 1-year and 5-yearLPRs unchanged, at 3.35% and 3.85% respectively. The PBOC has shiftedto the 7-day repo rate as being the main signal of policy, this toowas left unchanged today, at 1.7%. Atthe setting of the onshore yuan reference rate today the PBoC droppedUSD/CNY (raised CNY) to its weakest level (strongest for CNY) sincethe end of May 2023. The setting was also the biggestone-day fallfor USD/CNY (rise for CNY) sinceMarch2023.Newscrossed also that China is considering removing some of the largestremaining restrictions on home purchases. This is an effort to boostthe property sector and, in turn, the economy. Theyuan strengthened again during its trading session. There werereports that major Chinese state banks were seen buying USD/CNY in aneffort to slow the rise of the yuan. This article was written by Eamonn Sheridan at www.forexlive.com.

The3 main focal points of the session were Japanese inflation data andpolicy decisions from the People’s Bank of China and Bank of Japan. TheAugust core CPI in Japan (prices excluding fresh food) rose 2.8% y/y,up from 2.

7% in July for its fourth straight month ofacceleration. This is encouraging news for the Bank of Japan. Laterin the session brought the BoJ policy decision.

The Bank left shortterm rates unchanged, as was widely expected. USD/JPYtraded a little lower on the session, touching 142.00 after the BoJannouncement.

Still to come from the Bank, Governor Ueda will hold a newsconference at 0630 GMT (0230 US Eastern time). Theother notable event of the session was the People’s Bank of Chinasetting its Loan Prime Rates (LPR). There were expectations (notunanimous) that the Bank would cut these.

The 50bp rate cut from theUS Federal Reserve mid-week was seen as giving the PBoC a little morepolicy flexibility. However, the Bank left both the 1-year and 5-yearLPRs unchanged, at 3.35% and 3.

85% respectively. The PBOC has shiftedto the 7-day repo rate as being the main signal of policy, this toowas left unchanged today, at 1.7%.

Atthe setting of the onshore yuan reference rate today the PBoC droppedUSD/CNY (raised CNY) to its weakest level (strongest for CNY) sincethe end of May 2023. The setting was also the biggestone-day fallfor USD/CNY (rise for CNY) sinceMarch2023. Newscrossed also that China is considering removing some of the largestremaining restrictions on home purchases.

This is an effort to boostthe property sector and, in turn, the economy. Theyuan strengthened again during its trading session. There werereports that major Chinese state banks were seen buying USD/CNY in aneffort to slow the rise of the yuan.

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