ForexLive Asia-Pacific FX news wrap: Yen loses support from new Japanese economy minister

• Federal Reserve speakers Wednesday include Barkin, Hammack, Musalem and Bowman
• ANZ say the path of least resistance for the RBNZ is a 50bp interest rate cut next week
• Japan’s Eco Min says not necessarily correct that Ishiba positive about further rate hikes
• Mainland China is on holiday, leaves Hong Kong to ramp shares even higher
• South Korea promises bold, immediate measures if market volatility execessive
• Explosion reported at Japanese airport
• Brent crude oil is back near US$74.50
• Walz and Vance were asked to address economic issues – vacuous garbage
• Will the Walz vs. Vance debate has financial market impact?
• ICYMI – J.P. Morgan Global Manufacturing PMI signals contraction for 3rd consecutive month
• Goldman Sachs flag hits to GDP, NFP from US east coast port strike
• South Korean September consumer price index marks slowest rise y/y since February 2021
• North Carolina mining town crucial to the semiconductor industry. Helene just wrecked it.
• FX option expiries for 2 October 10am New York cut
• Wall Street Journal: “Investors Gear Up for October ECB Rate Cut”
• HSBC expect a 50bp interest rate cut from the Reserve Bank of New Zealand next week
• Tune in for the Vance vs. Walz debate at 2100 US Eastern time (0100 GMT)
• Trump has pulled out of an interview with 60 minutes
• Here is another forecast for a 50bp interest rate cut from the RBNZ next week
• US east coast port strikes haven’t had any direct impact on the West Coast, eg. Port of LA
• UBS forecast gold to USD2900
• Oil – private survey of inventory shows a headline crude oil draw
• China is on holidays – Goldman Sachs take the opportunity to shrug off all the stimulus
• Forexlive Americas FX news wrap: Iran hits Israel with missile attack
• Major US indices close sharply lower as geopolitical concerns weigh
• Trade ideas thread – Wednesday, 2 October, insightful charts, technical analysis, ideas

There
was no data of significance from the session today, and little news
of note.

We
did have the US vice President debate, but this passed with little
more than partisan bickering. The secret to these debates is to
approach them with very, very low expectations for anything of
substance; avoid disappointment. On the positive side the two were
polite to each other, mainly.

NZD/USD
was a mover on the session. We had ongoing forecasts of a 50bp rate
cut to come from the Reserve Bank of New Zealand at their meeting on
October 9. There was little else from NZ.

USD/JPY
traded higher. Japan has a new Economy Minister, Ryosei Akazawa, who
made the noob mistake of speaking honestly. Don’t be too concerned,
this will pass. Akazawa dialled back support for ongoing Bank of
Japan rate hikes with comments such as:

• it’s
  not necessarily true that Prime Minister Shigeru Ishiba is positive
  about further interest rate hikes by the Bank
• “Our
  top priority is to ensure that Japan completely exit from deflation”

• exiting
  deflation would take some time
• “Ishiba’s
  (previous) comments on the need for monetary policy normalization
  have various conditions attached”

These
are obviously
yen negative comments, at the margin, and the currency has lost ground
today.

Mainland China remained closed for holidays. Hong Kong was open and stocks there skyrocketed yet again.

This article was written by Eamonn Sheridan at www.forexlive.com.