ForexLive Asia-Pacific FX news wrap: Chinese stocks green, PBOC support fund announced

• Japan government junior coalition partner says utility and fuel subsidies should continue
• US CPI data due Thursday. Here are the ranges of estimates (& why they’re crucial to know)
• Bank of Japan Deputy Governor Himino will be speaking soon
• More on “China’s Central Bank Launches Swap Facility to Boost Stock Market”
• PBOC sets USD/ CNY reference rate for today at 7.0742 (vs. estimate at 7.0734)
• The build up to the next China ‘stimulus’ briefing is on – arriving on Saturday
• PBOC to establish securities, funds to aid capital market stability
• Australian data – October consumer inflation expectations 4.0% (prior 4.4%)
• Japan PPI (September) 0.0% m/m (expected -0.3%) and +2.8% y/y (expected +2.3%)
• JP Morgan raise the question of no cut at the Federal Reserve November 7 FOMC meeting
• RICS house price balance positive for the first time since October 2022
• Most Japanese firms see USD/JPY in 140-150 range through to March 2025
• More from Fed’s Daly – not worried about reaccelerating inflation, more so on jobs market
• Fight Club – Fed officials were split at their meeting in September on 50 vs. 25
• Fed’s Daly: One or two more Fed rate cuts likely this year
• Fed’s Collins reiterates support for further Federal Reserve rate cuts
• Trump could create a ‘Shadow’ Fed Chair – undermine Powell
• Forexlive Americas FX news wrap 9 Oct: Dollar, yields and stocks move higher ahead of CPI
• AUD note: Reserve Bank of Australia’s Assistant Governor Economic Hunter speaks later
• UK losing HNW individuals faster than any other country – worst in the world
• Record close on the S&P and the Dow.
• Trade ideas thread – Thursday, 10 October, insightful charts, technical analysis, ideas

The
People’s Bank of China announced today that it is to set up a
Securities, Funds and Insurance companies Swap Facility (SFISF),
initially of 500 billion yuan. Its purpose is to build “healthy
and stable development of the capital market.” Those security,
funds and insurance companies eligible can pledge assets such as
bonds, stock ETFs, and CSI300 stocks. They’ll receive liquidity from
the PBOC to boost their capacity to access funds, increase equity
holdings. Yesterday
afternoon we had the announcement of China’s Ministry of Finance
briefing, scheduled for 10 am Beijing time (0200 GMT, 2200 US Eastern
time) on Saturday, October 12, which is to provide insights into
fiscal policy and economic development … or ” intensifying
countercyclical adjustments to its fiscal policy” according to
documents.The
combination of two helped stocks in China and Hong Kong stabilize
today.

From
Japan were data for ‘wholesale’ inflation, the PPI (also referred
to as the Corporate Goods Price Index) for September. This rose from
August, and came in better than expected. USD/JPY
has not had a large range today, and is little changed on the
session.

Federal
Reserve Bank of San Francisco President Mary Daly spoke, projecting
one or two further FOMC rate cuts this year. There are more of her
remarks in the bullet point above.

Major
FX rates traded in a subdued fashion ahead of the US CPI data due
Thursday morning (8.30 am) US time.

As
a heads up, at 0735
GMT (0335 US Eastern time … i.e. soon) Bank of Japan Deputy
Governor Ryozo Himino will be speaking.

Reserve Bank of Australia’s Assistant Governor Economic Hunter will speak at 0745 GMT, 0345 US Eastern time.

I don’t have topics for
these speeches.

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