August 01, 2022 00:43 GMT
USD/JPY has given away its initial gains, taking a nosedive despite U.S. Tsy yields opening slightly higher on the back of some fresh hawkish Fedspeak. Risk-negative headlines from over the weekend may have lent some support to the yen.
- The latest set of China's official PMIs disappointed as the manufacturing gauge unexpectedly plunged into contraction. On top of that, Sino-U.S. tensions over Taiwan and reported unrest on the Kosovo-Serbian border have provided sources of concern.
- USD/JPY has now moved away from session lows (Y132.81) after failing to test last Friday's worst levels. The rate last operates at Y132.95, down 32 pips on the day.
- The kiwi dollar outperforms its high-beta peers, even as AUD, CAD and NOK all struggle for any topside impetus. AUD/NZD is testing the water below the NZ$1.1100 mark.
- Note that New South Wales observes a public holiday, with local financial markets closed as a result.
- PMI data will continue to hit the wires through the day, with China's Caixin Manufacturing print providing the main point of note in Asia.