News
and data flow was very light indeed during the session here. As I am
writing the news is crossing that US Senate Republican and Democrat
negotiators are nearing a deal on a short-term spending measure
intended to keep the government open after October 1st.
The measure is a stop-gap for 4 to 6 weeks of funding. Apart from
that there isn’t anything fresh at all on the news front.
From
Japan we had some lacklustre verbal intervention comments aimed at
supporting the JPY. USD/JPY is barely off its session high (in a tiny
range) so these haven’t weighed too much on the pair.
From
the People’s Bank of China we had a record high divergence between
the modelled estimate for the USD/CNY reference rate setting and the
actual. See bullets above for more on this.
Federal
Reserve Bank of Minneapolis President Neel Kashkari said he is in the
‘one more Fed Funds rate hike this year’ camp.
Asian
equity markets:
-
Japan’s
Nikkei 225 -0.9% -
China’s
Shanghai Composite -0.1% -
Hong
Kong’s Hang Seng -0.6% -
South
Korea’s KOSPI -1.2% -
Australia’s
S&P/ASX 200 -0.6%
USD/JPY is a picture of pent-up energy ready to burst …