Majors In Narrow Bands

A rangebound session far with major pair sticking to narrow bands, there were reports that the Senate had an agreement for final passage on the infrastructure bill. AUD/USD is down 4 pips, NZD/USD is down 3 pips.

• USD/JPY is up 9 pips as Japanese markets return from a holiday. Data from Japan earlier showed bank landing excluding trusts rose 0.5% in July, the BoP current account surplus widened more than expected to JPY 905.1bn. Elsewhere Sankei reported that PM Suga will ask officials to draft a stimulus package, which would be funded by a Y30tn extra budget. The government will aim at compiling the package before the next general election.
• Offshore yuan stronger, USD/CNH is down 16 pips but holding most of yesterday's gains. Markets continue to digest the PBOC's quarterly monetary policy report published Monday where the Bank said inflation pressures in the economy are controllable, but also noted risks to the growth outlook.