ForexLive Asia-Pacific FX news wrap: What. A. Day. Yen, yuan, crypto all moving.

USD/JPY
rocketed higher early on Fed push back. Governor
Waller spoke in Sydney, Australia, with a slap for the market
response to the coller CPI report out of the US last Thursday. His
comments were along the lines of:

“The
market seems to have gotten way out in front” over one CPI
report
“We’re
going to need to see a continued run of this kind of
behavior…before we really start to think about taking our foot off
the brake.”
“Everybody
should just take a deep breath, calm down. We’ve got a ways to go”
And
there is more detail in the posts above.

USD/JPY
jumped 100+ points, topping out ahead of 140 before reversing back
down by around 100 points.

From
China we had weekend news on a further relaxation of COVID response
policy. This was accompanied by news of further support to come for
the beleaguered property sector. The combined effect of these twin
news items was buying for Chinese stocks, property-related stocks
especially. In FX, the onshore Chinese yuan was revalued by the
People’s Bank of China at the reference rate setting today 1000+
points away from Friday’s mid-rate. This is the largest
differential since 2005.


In
the crypto space news broke over the weekend of a mishap at another
‘exchange’. This time a US$400mn transfer was mishandled
(according to an admission by the CEO). It happened in late October.
The crypto complex came under selling pressure. Bitcoin, for example,
dipped back under US$16K at one stage.

Apart
from the yen and yuan other major FX rates were more sedate. There
were losses against the USD on Waller’s remarks, some retracements,
and all for not a lot of net change on the session as a whole.