ForexLive Asia-Pacific FX news wrap: What. A. Day. Yen, yuan, crypto all moving. | Forexlive

• Chinese yuan, both onshore and offshore, adds further to gains
• IMF on global economy – “the outlook is gloomier”, particularly in Europe.
• Morgan Stanley forecast US CPI to be under 2.0%y/y by the end of 2023
• More on Yellen seeing benefits for buyers of Russian oil with the price capped
• Bitcoin sliding further – the weekend brought further troubling news for crypto
• BOJ Gov Kuroda says that sharp currency moves are undesirable
• Yellen says energy difficulties could push Europe into recession
• China property stocks surging on news of rescue package
• PBOC sets USD/ CNY reference rate for today at 7.0899 (vs. estimate at 7.0896)
• BOJ Kuroda speech – “should continue with monetary easing”
• Oil is getting a lift from the new economy-support policies in China
• China to open Monday with a 20pt plan to optimize COVID policy, 16 pointer for property
• PBOC is expected to set the USD/CNY reference rate at 7.0896 – Reuters estimate
• China financial media speculating on a PBOC fund injection via an MLF
• FTX lacked in their risk focus & the rest is history.That and a CPI miss led to a USD rout
• US President Biden and China President Xi are meeting today, Monday, 14 November 2022
• New Zealand services PMI (October) to 57.4 (prior 55.9)
• US equity index futures trade (Globex) open for the new week, lower after Waller push-back
• WSJ piece on China’s Xi and his CCP making adjustments to both property & COVID policies
• US dollar rising as Fed’s Waller pushes back against market euphoria
• Fed’s Waller – November FOMC statement designed to signal potential step down to 50
• Fed’s Waller dismisses US CPI report as ‘just one data point’, markets ‘way out in front’
• “China has unveiled its most sweeping rescue package to bail out real estate market”
• China COVID: Hard hit Haizhu District (Guangzhou) to restart public transit in some areas
• Weekend – Spate of withdrawals from Crypto.com – CEO said $400 mn transaction mishandled
• Economic calendar in Asia for Monday, 14 November – a very light one – Fed speaker
• Week ahead: G20, US retail sales, UK Autumn Statement, China activity data
• Video: Has the US dollar topped?
• Some remaining FTX balances stolen, $383m drained from exchange

USD/JPY
rocketed higher early on Fed push back. Governor
Waller spoke in Sydney, Australia, with a slap for the market
response to the coller CPI report out of the US last Thursday. His
comments were along the lines of:

“The
market seems to have gotten way out in front” over one CPI
report
“We’re
going to need to see a continued run of this kind of
behavior…before we really start to think about taking our foot off
the brake.”
“Everybody
should just take a deep breath, calm down. We’ve got a ways to go”
And
there is more detail in the posts above.

USD/JPY
jumped 100+ points, topping out ahead of 140 before reversing back
down by around 100 points.

—

From
China we had weekend news on a further relaxation of COVID response
policy. This was accompanied by news of further support to come for
the beleaguered property sector. The combined effect of these twin
news items was buying for Chinese stocks, property-related stocks
especially. In FX, the onshore Chinese yuan was revalued by the
People’s Bank of China at the reference rate setting today 1000+
points away from Friday’s mid-rate. This is the largest
differential since 2005.

—

In
the crypto space news broke over the weekend of a mishap at another
‘exchange’. This time a US$400mn transfer was mishandled
(according to an admission by the CEO). It happened in late October.
The crypto complex came under selling pressure. Bitcoin, for example,
dipped back under US$16K at one stage.

—

Apart
from the yen and yuan other major FX rates were more sedate. There
were losses against the USD on Waller’s remarks, some retracements,
and all for not a lot of net change on the session as a whole.