ForexLive Asia-Pacific FX news wrap: USD/JPY swings in a hundred+ point range

• China’s benchmark lending rates remained unchanged in August – recap
• Federal Reserve speakers Tuesday include Bostic (on payments) and Barr (on cybersecurity)
• AUD – weekly survey shows inflation expectations are at a 30-month low
• RBA minutes: Possible cash rate will stay steady for an extended period
• PBOC sets USD/ CNY central rate at 7.1325 (vs. estimate at 7.1317)
• People’s Bank of China leaves Loan Prime Rates (LPRs) unchanged
• Inflation data due from Canada on Tuesday – preview
• JP Morgan says last week was reinforcement of bullish stance
• New Zealand data, July trade balance -963m (prior +585m)
• China has stopped publishing daily data on foreign fund flows into its stock market
• ECB’s Rehn cites negative growth risk as reinforcing the case for a rate cut in September
• Its PBoC rate setting day, analysts unanimously expect an on hold decision
• Goldman Sachs says the ‘pain trade’ for US equities is higher
• MUFG says Fed communications this week could send JPY higher still
• Poll: Federal Reserve to cut Fed Funds by 25bp in September, November and December
• Forexlive Americas FX news wrap: Dollar decline extends further
• The close: The impressive buying in US equities continues. Nasdaq leads the way
• Trade ideas thread – Tuesday, 20 August, insightful charts, technical analysis, ideas

Yen
crosses were once again movers, and once again on fresh news nor data
out of Japan. USD/JPY traded earlier to just above 146.85 before
plunging a big figure and now having bounced all the way backup and more. As I post its just shy of 147.00.

We
had the People’s Bank of China Loan Prime Rate (LPR) setting today.
Both the 1- and 5-year remained unchanged at 3.35% and 3.85%
respectively. This was widely expected after both were cut last
month. The USD/CNY was set at 7.1325 vs. 7.1415 the previous day, and
7.1317 Reuters estimates.

We
had minutes from the Reserve Bank of Australia August meeting. The
Bank made mainly hawkish points, and conveyed it has mulled a rate
hike, and with no talk at all of any imminent rate cut.

AUD/USD
and subsequently drifted towards its low of the session, so far at
least, in a small range only though. Other major FX maintained small
ranges against the US dollar also.

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