Forexlive Asia-pacific FX news wrap 25 Aug:JPY continues its move higher to start the week

• US yields are lower to start the trading week
• PBOC sets USD/ CNY central rate at 7.1139 (vs. estimate at 7.1132)
• Japan’s Nikkei 225 index falls near -1.00% at the open
• E-mini S&P contract is little changed
• Crude oil trading marginally higher to start the trading week. Tests key hourly MA.
• It is a UK bank holiday today.
• Gaza talks end without an agreement.
• Major US earnings this week highlighted by Salesforce, Dell and the big one Nvidia
• Powell’s Path: Rate cuts and economic outlook after Jackson Hole Summit
• Weekly Market Outlook (26-30 August)

It has been a quiet start to the trading week as the market takes a breather from the Jackson Hole Summit and the Fed Chairs comments that solidified a cut in rates in the US in September.

The market has priced a near 35% chance of 50 basis points, but that view will not be clearer until September 6th after the US jobs report. The next Fed decision is not until September 18. There is still a long way to go with it just being August 25th.

As a result, the market is a bit stymied and is content to wait for the next shove in most of the major currency pair.

Looking at the trading ranges to start the week:

• EURUSD 16 pips (22-day average of 62 pips)
• GBPUSD 18 pips (22 day average 80 pips)
• USDCAD 17 pips (22 day average 67 pips)
• AUDUSD 16 pips (22-day average 61 pips)
• NZDUSD 13 pips (22-day average 68 pips)

The USDCHF which reached 26 pips was still only 35% of what is normal for a day at 76 pips. The USDJPY (and JPY crosses) moved relatively more withe the USDJPY range at 90 pips but the average over the last 22-days was 236 pips). For a technical look at both those pairs heading into the new trading week, CLICK HERE.

In other words, the activity was limited.

US yields did move lower by a couple basis points continuing the moves from last week (click here),

Crude oil prices are higher (helped by bombing in Isreal) by about $0.39 but remains between the 100 and 200-day MAs.

The S&P e-mini contract is down modestly (0.04%). The Japan Nikkei is lower by -1.09% as it reacts to higher rates in Japan and lower rates in the US.

Bitcoin is little changed at $64,079. The Friday closing level was at $64,085. zzzzzzzz.

Much of the same sleepy markets might be expected in the European session as it is a UK holiday.

This week, the biggest economic releases will be the US core PCE data on Friday and the weekly US initial claims and durable goods data (click here). There is some CPI data in Australian and preliminary data for Europe, but for Australia it is just a monthly report and in the EU, the data is preliminary flash data.

Of note will also be earnings from Nvidia on Wednesday after the close. Salesforce, Crowdstrike and Dell will also release and could attract interest (especially Nvidia).

Good fortune with your trading.

This article was written by Greg Michalowski at www.forexlive.com.