ForexLive Asia FX news wrap: USD/JPY back to its US timezone high

Westpac are now looking for a 40bp RBA interest rate hike in June
Onshore yuan is at its weakest since September 2021
Bank of Japan meet next week - expected to upgrade their inflation forecasts
PBOC Governor says will provide more support for the real economy
PBOC sets USD/ CNY reference rate for today at 6.4596 (vs. estimate at 6.4641)
Honda to cut production by about 50% on 2 lines in 1 of its domestic factories, early May
Nomura says the FOMC is likely to hike by 50bps in May then 75bps in both June & July
EUR - 3 scenarios for the ECB normalisation path
Japan preliminary PMIs April: Manufacturing 53.4 (prior 54.1)
Japanese government playing down the rise in headline inflation
More from Japan's fin min - Won't comment on intervention in the FX market
Shanghai authorities say COVID-19 lockdwon will be lifted in stages once zero is reached
Japan inflation data for March 2022 - Headline inflation +1.2% y/y (expected 1.3%)
Japan fin min Suzuki says he confirmed close communication on FX with US' Yellen
UK consumer sentiment has dropped like a rick - back to a near record low
BoC Gov Macklem says will not rule anything out re interest rate hikes
Australia preliminary PMI April: Manufacturing 57.9 (prior 57.7) Services 56.6 (55.6)
ICYMI - OPEC has told the IMF that the oil price rally is mainly due to geopolitics
Japan will increase its fuel subsidies yet again
ICYMI - China approves construction of six new reactors
UK government "new masterplan to shred hated Brexit deal" (Northern Ireland Protocol)
Forexlive Americas FX news wrap: Yields jump, dollar rallies, stocks plunge
US Treas Sec Yellen said some further proposed sanctions on Russia difficult to enact
Trade ideas thread - Friday 22 April 2022


Japanese Finance Minister Suzuki escalated his verbal intervention in the yen in remarks today. Suzuki conveyed key points from a meeting he had with US Treasury Secretary Yellen, among them that he explained to Yellen that recent yen falls are rapid, but that he did not express concerns over the movement. 
Suzuki went on to confirm that the government has been saying that rapid yen moves are undesirable, and what's happening now can be seen as rapid moves. He added that FX moves will be monitored closely and “with a sense of urgency”.
While this is an escalation in rhetoric there was nothing to indicate actual intervention is imminent. 
USD/JPY has traded back to its US time high circa 128.60.
Also from Japan today we had March CPI data. The core rate (which excludes volatile fresh food prices but includes fuel costs) jumped 0.8% y,y and is the 7th consecutive month of gains for the indicator. It was also the fastest year-on-year rise since January 2020. 
The CPI measure that excludes energy prices and fresh food continued to show in the negative.
The Chinese yuan continued to drop against the dollar during the session. Onshore yuan, CNY, hit its weakest since September last year. From the People’s Bank of China we heard from Governor Yi Gang. He promised more support for the economy. The moves from the PBOC since China’s leaders issued instructions for further supportive policy have been minor only. Late last week the reserve requirement ratio (RRR) was cut by just 25bps (the usual move is 50 to 100). On interest rates the latest medium-term lending facility (MLF) (back on Friday the 15th) was conducted at an unchanged rate. This week the loan prime rates (LPR) were left unchanged. While we had words from Governor Yi Gang today, we are awaiting action.
Across major FX moves were fairly subdued. As noted, USD/JPY gained ground. Cable, EUR/USD are fairly flat. AUD, NZD, CAD are a touch weaker against the dollar.
USD against the onshore yuan, CNY:

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