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• JPMorgan flags a $103 bn yen short position, unwind could push USD/JPY to 142
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• PBOC sets USD/ CNY reference rate for today at 6.7787 (vs. estimate at 6.7093)
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• investingLive Americas market news wrap: Waller tamps down rate hike bets
• ICYMI: Oman said to reject Iran’s plan to jointly charge fees on ships in Hormuz
• Citi lifts 3Q26 Brent forecast to $86 but sees prices sliding to $65 by 2027

Summary:

• Asian markets showed limited direction as traders awaited US non-farm payrolls data, due 8:30am US Eastern time on Friday, 4 September 2026.
• Oil traded steadily near its recent highs, with no significant new developments out of the Middle East to shift the tone.
• Gold tracked sideways, trading around $4,475 an ounce.
• Nomura said the Bank of Japan could hike at three consecutive meetings through December in an extreme scenario if renewed yen weakness pushes the pair back toward 160, while calling a quarter-point move this month “reasonable.”
• RBNZ Assistant Governor Karen Silk signalled the bank’s next rate hike is more likely in December than October, while fellow committee member Carl Hansen’s separate remarks reiterated guidance the RBNZ had already communicated.
• NZD/USD recovered above 0.5900 after its mid-week fall, and USD/JPY regained the 156 level following Thursday’s drop.
• Regional equities took their lead from Wall Street’s overnight gains, with the Nikkei up around 1% and the Kospi higher by 1.3%.

Asian markets moved with little conviction on Friday, with traders largely positioning ahead of the US non-farm payrolls report due at 8:30am. Oil held steady near its recent highs, with no fresh developments out of the Middle East to give the market a new direction, while gold traded sideways around $4,475 an ounce.

On central banks, Nomura said the Bank of Japan could raise rates at three consecutive meetings through December in an extreme scenario, should renewed yen weakness push the currency back toward 160 per dollar, with the bank’s head of FX strategy Japan calling a quarter-point hike this month “reasonable” regardless. In New Zealand, RBNZ Assistant Governor Karen Silk indicated the central bank’s next rate increase is more likely to land in December than October, while separate comments from fellow Monetary Policy Committee member Carl Hansen largely restated guidance the bank had already communicated, adding little new to the picture.

Currency markets were similarly quiet. NZD/USD recovered back above the 0.5900 level following its mid-week decline, while USD/JPY regained the 156 handle after Thursday’s drop. Regional equities took their cue from a stronger Wall Street session overnight, with Japan’s Nikkei up around 1% and South Korea’s Kospi higher by 1.3%.

ADDED … as I wrtie USD/JPY is being lifted towardsa 156.40 in a furhter retracement of Thursday’s fall. 

This article was written by Eamonn Sheridan at investinglive.com.