<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-continues-march-higher-with-key-resistance-still-some-distance-away-20220906/“>USD/JPY continues march higher with key resistance still some distance away</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/rba-raises-cash-rate-by-50-bps-to-235-as-expected-20220906/“>RBA raises cash rate by 50 bps to 2.35%, as expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/rba-plays-it-straight-hints-that-rates-are-now-in-neutral-territory-20220906/“>RBA plays it straight, hints that rates are now in neutral territory</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-pm-truss-reportedly-plans-to-freeze-household-energy-bills-for-18-months-20220906/“>UK PM Truss reportedly plans to freeze household energy bills for 18 months</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/italy-plans-to-cut-gas-consumption-amid-energy-crunch-20220906/“>Italy plans to cut gas consumption amid energy crunch</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-july-industrial-orders-11-vs-05-mm-expected-20220906/“>Germany July industrial orders -1.1% vs -0.5% m/m expected</a></li></ul><p>Markets:</p><ul><li>GBP leads, JPY lags on the day</li><li>European equities higher; S&P 500 futures up 0.6%</li><li>US 10-year yields up 7 bps to 3.26%</li><li>Gold up 0.1% to $1,712.03</li><li>WTI crude down 0.2% to $86.70</li><li>Bitcoin up 0.8% to $19,899</li></ul><p style=““ class=“text-align-justify“>The dollar continues to sit in a comfortable spot as we await the return of Wall Street from the long weekend. Treasury yields are higher and that is underpinning USD/JPY as the pair pushes to fresh highs since 1998, breaching 142.00 currently – up over 1% on the day.</p><p style=““ class=“text-align-justify“>Things are continuing to stay in place for the dollar as <a target=“_blank“ href=“https://www.forexlive.com/news/things-are-all-lining-up-for-the-dollar-towards-the-end-of-the-week-20220819/“ target=“_blank“>the factors that have driven the move since August</a> are still playing out. EUR/USD rose initially to 0.9985 only to fall back to flat levels now around 0.9925 as the euro is still sluggish amid the energy crisis in the region. GBP/USD is hopeful about new UK PM, Liz Truss‘ efforts to tackle soaring energy prices but I would argue that it is but a false dawn for the quid, with cable nudging up to 1.1600 before keeping around 1.1570 on the day – off two-year lows from yesterday.</p><p style=““ class=“text-align-justify“>Meanwhile, China is slowly guiding the yuan to weaken towards 7.00 against the dollar – in which I would expect them to draw a hard line there after having cut the FX reserve ratio yesterday. USD/CNY touched 6.96 today, which is its highest level in two years.</p><p style=““ class=“text-align-justify“>Elsewhere, the antipodeans are struggling with AUD/USD down 0.4% to 0.6765 after the RBA played it straight and hiked the cash rate by 50 bps to 2.35%, as expected. The central bank hinted at rates being at neutral territory but offered no additional hawkishness as they are very much just a passenger now to the Fed’s tightening drive.</p>

This article was written by Justin Low at forexlive.com.