The yen remains in focus after its huge dip on Tuesday and then its partial comeback on Wednesday. You will recall that USD/JPY tested once again towards 145 before being hit by a jaw escalation, notably from Finance Minister Suzuki, and then a Bank of Japan “rate check” which has sparked reflections on future intervention. On Wednesday US time, USD/JPY fell back towards 142.50. During the session, it tracked sideways in a wide range of 142.80/143.20 (and thereabouts), but rose after comments from a senior LDP official (the LDP is the ruling party in Japan) have cast doubt on the ability of the Bank of Japan to have any significant impact from the intervention. That may be the truth, but it hasn’t helped support the yen, which has been the aim of the Japanese administration. USD/JPY reached around 143.50 after less favorable comments.
On the data front today, New Zealand Q2 GDP came in well above expectations. NZD/USD is up on the session.
In Australia, we had a lower-than-expected job gain (not much) and an above-expected unemployment rate (again, not much). The details of the report were better, and it wasn’t a bad report, but not as good as expected. AUD/USD also gained on the session.
Regional stocks followed Wall Street’s higher close adding small gains.
Russia is reportedly considering imposing export duties on its coal.
The People’s Bank of China left its Medium Term Lending Facility (MLF) rate unchanged, 400 billion one-year MLF was issued and 600 billion matures today. Thus a net drain of MLF activity.