ForexLive Asia-Pacific FX news wrap: Subdued forex ranges here

USD/JPY
is trading back above 133.20 as I update after lows during the
session circa 132.62. Apart from the yen, major FX traded in very
small ranges in Asia post-CPI data in the US on Wednesday. What
movement we did have was in the form of continued retraces of the
sharp USD weakness witnessed after the data. A market holiday in
Japan thinned out trading a little. When Japan is closed physical US
bond trading in the APac region grinds to a halt. This does not
always result in lacklustre forex moves but today it was quiet
indeed.

Onshore
yuan (CNY) was set by the People’s Bank of China at its strongest
reference rate (lower USD/CNY) for a month.

News
flow was light. US President Biden’s administration indicated it
was not ready to scrap any China tariffs for now. China’s
coronavirus situation worsened, again. The city of Yiwu, which is
plays an important role in Chinese manufacturing and export is going
full lockdown. For 3 days. We’ve heard ‘3 days’ many times in
the past and it often stretches for months. For the folks in that
city lets hope not this time,

Data
flow was light. Singapore GDP contract q/q in Q2. Australian consumer
inflation expectations declined a little on the month.