ForexLive Asia-Pacific FX news wrap: USD/JPY lower

• China’s loan collateral tweak will ease ‘asset famine’
• US Q2 GDP data is due Thursday – Goldman Sachs expect +2.3%
• The AUD and the easing from China – given more a nudge lower
• US Vice President Harris has just passed 1,976 Delegates.
• PBOC sets USD/ CNY central rate at 7.1334 (vs. estimate at 7.2746)
• Deutsche Bank expect further losses still to come for large cap tech stocks
• Westpac on AUD/USD – look to dips into the 0.6625-35 zone as buying opportunities
• Australian Consumer Confidence Index, weekly survey, hits its highest in 6 months
• South Korean June PPI +2.5% y/y, seventh straight month of higher
• JP Morgan is Leaning Towards a Hold at This Week’s BoC Meeting
• Japan senior government member says BOJ policy should be made clearer
• Macquarie analysts reiterate that “Trump 2.0 will be a more inflationary policy regime”
• A warning not to get too complacent on politics from PIMCO: Still 3.5 months to go!”
• Watch the EUR data this week for ECB implications
• Vice President Harris speaking – presenting policy position
• UBS says PBOC 0.1% rate cut on Monday maybe just a ‘down payment’ on more to come
• US SEC approves first spot ether ETFs to start trading Tuesday (July 23, 2024)
• Forexlive Americas FX news wrap 22 Jul: Markets digest the Biden exit & Harris entrance
• TD on gold, wary of downside risks from many directions, including an “Asian buyer strike”
• Analyst says the “forces underway for inflation to fall like a rock are in place”
• The closing bell rings and the tech sector/small cap stocks lead the way in tandem
• Trade ideas thread – Tuesday, 23 July, insightful charts, technical analysis, ideas

News
and data flow was fairly light. A data point that pretty much goes by
unnoticed each week is the ANZ-Roy Morgan Australian Consumer
Confidence weekly survey. To be fair it went by unnoticed again
today, but it was interesting. It jumped to its highest in six
months, with that jump being the biggest since April 2021. Cited as
reasons include:

• the
  boost to households from tax cuts

• and
  a further boost yet to come from various ‘cost of living’
  support measures

AUD
(and NZD) remained heavy on the session. AUD is barely off its recent
low while NZD/USD dipped to it lowest since May.

On
the fluid US politics front, the news was that Vice President Harris
has secured enough delegates, more than 1,976, to now be the
Democratic Party’s Presumptive Nominee for November’s
Presidential Election. While the formalities of a vote are yet to
take place, these are, well, formalities. What it means for markets
is a measure of certainty in the race, locking in Harris v. Trump.

USD/JPY
was the only real mover. Its dropped 50 or so points from its session
high without any news nor data catalyst. The only thing we really got
was, Toshimitsu Motegi, the Secretary-General of Japan’s ruling party Liberal Democratic Party (LDP), saying he thinks Bank of Japan
policy should be made clearer. Hard to read too much into that.

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