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Japan Coronavirus Situation Deteriorates

FOREX

Major pairs respecting narrow ranges again in Asia. AUD and NZD both hold near the top of yesterday's range. In New Zealand trade balance flipped to a deficit of NZ$402mn in July from a surplus of NZ$245mn in June, with annual deficit widening to NZ$1.104bn as a result. There has been little in the way of local news flow outside of that.

  • USD/JPY creeping higher but still within yesterday's range after struggling for clear direction on Tuesday. Japan's Covid-19 task force may formalise the declaration of emergency for another eight prefectures today Other major pairs including offshore yuan are flat.
  • Looking ahead US durable goods date is due later in the session while broader focus for the week remains on the Fed's annual Jackson Hole Economic Symposium, with commentary from FOMC Chair Powell on Friday headlining that (now virtual) event.

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