In the latest currency market development, the USD/JPY fell from 151.70 to below 151.20 after Japanese officials hinted at intervention. Officials Kanda, Suzuki, and Matsuno expressed concern over “one-sided,” “speculative,” and “disorderly” movements that led to the shift.
Subsequently, the AUD and NZD rebounded against the USD after an initial depreciation. In particular, the NZD/USD was influenced by the Q3 employment report, which showed below average wage growth and a higher unemployment rate. Interestingly, these trends were unaffected by the Reserve Bank of New Zealand’s financial stability report.
Meanwhile, the S&P Global Manufacturing Purchasing Managers’ Index (PMI) reports for October pointed to continued contraction in Australia and Japan. In a notable turn of events, China also moved from expansion to contraction, as reflected in its PMI data. The PMI is a key indicator of economic health that reflects the performance of private sector businesses.
