ForexLive Asia-Pacific FX news wrap: Poor data from Japan, China | Forexlive

USD/JPY
rose back towards 140.50 in Tokyo morning trade. The only fresh data
from Japan was Q3 GDP (preliminary) which was a huge miss (see
bullets above). If you are looking for a reason for the weaker yen on
the session so far this’ll work. It adds to the case for no pivot
from the Bank of Japan any time soon.

We
also had poor data from China. October retail sales, industrial
production and investment data all missed. Retail
sales contracted y/y. This
poor data adds to the case for a COVID-policy pivot out of China, and
further support for the property market. We’ve had Chinese
authorities moving this way, especially over the weekend (see
yesterday’s wrap for a rundown on the new policy moves from China).
Having said this, high COVID numbers in major city Guangzhou have
prompted lockdowns there.

Also
from China today we had a 1 tln yuan maturing medium-term lending
facility. This was partially rolled over with a fresh 850 tln yuan
MLF. Other long-term loan measures made up the shortfall. The other
interesting item in this was the unchanged rate, at 2.75%. This
indicates that no change in the one- and five-year Loan Prime Rates
(LPR) to be set on Monday, 21 November, by the People’s Bank of
China is likely.

Elsewhere
across major FX rates NZD/USD traded back to its overnight high. EUR
lost ground against the USD.

Higher USD/JPY and NZD/USD translate to a rise for NZD/JPY: