USD/JPY
dribbled slowly lower for the session and as I post the wrap has
accelerated to the downside.
Former
Japanese Vice Finance Minister for International Affairs, Takehiko
Nakao, who was responsible for instructing Bank of Japan intervention
in the yen should he deem it necessary, was reported on news wires a
few minutes ago as saying the current weakness in the yen is not
beneficial to Japan’s economy. This has prompted the accelerated
drop in USD/JPY.
Across
other major FX the USD has mainly strengthened. AUD, NZD, GBP all
slipped a little during the session. This has meant yen crosses
lower.
On
the data front today we had a counter point to Nakao’s view.
Preliminary PMIs from Japan for June all came in firmly in expansion.
Manufacturing was down a little from May but services gained.
Australian
flash PMIs also recorded expansion readings.
In
China, Shenzen introduced mandatory COVID tests for those wishing to
use public transport or attend public venues. The outbreak in Shenzen
has been in tiny numbers (so far) but Chinese authorities have
nevertheless responded in their rapid fashion.
Oil fell on the session. The private inventory survey showed a build vs. the draw that was expected. Recession fears were a theme playing on commodities (and commodity FX)