investingLive Asia-Pacific FX information wrap: USD/JPY again above 148.00

The US greenback’s post-CPI slide eased solely barely, with USD/JPY bouncing above 148.10, whereas most different majors have been quiet. Australian wages beat forecasts at three.four% y/y, a consequence above the RBA’s projection that might mood expectations for deeper price cuts.

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• Japan’s wholesale inflation has slowed down for the fourth month in a row
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• Japan knowledge – July PPI +Zero.2% m/m (anticipated +Zero.2%) & +2.6% y/y (anticipated +2.5%)
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• Japan Reuters Tankan – Manufacturing index +9 in August vs. +7 in July
• New Zealand Digital Card Retail Gross sales July 2025 +Zero.2% m/m (vs. prior +Zero.5%)
• Rabobank sees sterling good points fading, forecasts EUR/GBP at Zero.87 close to time period, Zero.88 in 6 months
• UBS: 100bps of Fed price cuts, begin in September regardless of value pressures lasting into 2026
• Goldman Sachs says US CPI backs view for Fed “insurance coverage” September price reduce
• Hong Kong’s central financial institution FX market intervention but once more
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• NASDAQ and S&P at highs and at report ranges
• Bessent says the Federal Reserve ought to take into consideration a Zero.5% rate of interest reduce in September

The US greenback recovered solely marginally after its post-CPI sell-off, with USD/JPY the principle driver, climbing again above 148.10 at one level. The native transfer appeared tied to additional weak point in Japan’s PPI, which fell year-on-year for a fourth straight month.

Elsewhere, main FX was notably quiet. Information and knowledge have been mild, however there have been a number of standouts. After the US shut, Treasury Secretary Bessent informed Fox Enterprise he expects months — if not a yr — of progress on decreasing fentanyl flows from China earlier than reducing tariffs. He additionally urged the Federal Reserve to contemplate a 50bp price reduce.

In Australia, Q2 wage development barely beat forecasts, with wages up three.four% y/y versus three.three% anticipated and matching Q1’s tempo. The consequence, above the RBA’s projection, may gas issues over lingering inflation pressures and mood expectations for deeper price cuts, at the same time as quarterly wage development eased to Zero.eight% from Zero.9%.

Equities largely tracked Wall Road’s good points, although Australia underperformed.

• Australia (S&P/ASX 200) -Zero.four%
• Hong Kong (Cling Seng) +1.9%
• Japan (Nikkei 225) +1.5%
• Shanghai Composite +Zero.6%

This text was written by Aaron Cutchburt at investinglive.com.