CNY

• Positive vibes. Cooling US labour market conditions & US Fed hints that a rate cut in September is possible boosted risk sentiment & weighed on the USD.• AUD reversal. AUD recouped its post AU CPI losses. Core inflation still a long way from home. RBA hike risks extinguished but cuts still some time away.• BoJ moves. Larger than anticipated BoJ rate rise. Policy divergence is reviving the JPY. USD/JPY back below 150. AUD/JPY ~10% below July peak. A positive night for risk assets with signs of a cooling US labour market, moderating wage pressures, and signals from the US...

• Cross-currents. Sell-off in US tech stocks resumes. US bond yields lower, while in FX the USD consolidated. AUD range bound over the past 24hrs.• Q2 CPI. Australian inflation due today. Data will make or break the case for another RBA hike. Consensus forecasts are above the RBA’s assumptions.• Global events. Offshore the China PMIs, EZ CPI, & US ECI are due. The BoJ also meets, while tomorrow morning the US Fed delivers its decision. There were a few renewed wobbles in markets overnight ahead of a jam-packed 24hrs of economic releases and central bank decisions. The sell-off in US...

• Mixed markets. Equities dip again & while long-end yields declined base metal & energy prices ticked up. USD consolidates but AUD still under pressure.• US data. Q2 US GDP higher than predicted. But forward indicators suggest this is a false dawn. US PCE deflator due tonight. US Fed meets next week.• JPY trends. JPY’s sharp rebound has been a factor weighing on the AUD. Q2 Australian CPI released next week. Will this help the AUD recover? Negative vibes across risk assets have generally continued, though there were a few positive signs starting to emerge. Q2 US GDP was the...