Skip to main content

Capital Street FX

Week Ahead Asia, 21–25 September: Xi’s Washington Summit, Yen Intervention Watch Through Japan’s Silver Week and a Live RBA Hike Countdown Steer a Holiday-Thinned Asian Session | 19 September 2026

September 19, 2026
CSFXadmin
Week Ahead, 21–25 September: Xi’s Washington Summit, Yen Intervention Watch Through Japan’s Silver Week and a Live RBA Hike Countdown Steer a Holiday-Thinned Asian Session | CSFX Asian Session Weekly
Asian Market Weekly Preview
Saturday 19 September 2026 · Week of 21–25 September 2026 · Holiday-Shortened Asian Trading Week

Week Ahead, 21–25 September: Xi’s Washington Summit, Yen Intervention Watch Through Japan’s Silver Week and a Live RBA Hike Countdown Steer a Holiday-Thinned Asian Session

USD/JPY 156.80 · AUD/USD 0.7120 · Copper $6.63/lb · Hang Seng 24,750 · Litecoin $55.00 · XRP $1.33
China LPR Mon 21 Sep · Japan Markets Closed Mon–Wed · Aussie Jobs & Japan Flash PMI Thu 24 Sep · Xi–Trump Summit Thu 24 Sep · China Mid-Autumn Holiday Fri 25 Sep · Full Asian session news for the week of 21–25 September 2026
USD/JPY· AUD/USD· Copper· Hang Seng· Litecoin· XRP
📋 Upcoming Week at a Glance · 21–25 September 2026
A Xi–Trump Summit, an Intervention-Primed Yen and a Looming RBA Hike Meet Thin Holiday Liquidity Across Asia
The week of 21–25 September 2026 is a holiday-thinned but event-dense stretch for Asian markets: Japan is shut Monday to Wednesday for Silver Week, South Korea closes for Chuseok on Thursday and Friday, mainland China’s exchanges close Friday for the Mid-Autumn Festival, and in the middle of it all Chinese President Xi Jinping meets Donald Trump in Washington on Thursday. It opens with USD/JPY at 156.80 after the Bank of Japan raised its policy rate 25 basis points to 1.25% — the highest since 1995 — in a 7–2 vote with two dovish dissents and no timetable from Governor Ueda. The yen sank as far as 158.06 on the disappointment before a Nikkei report of a BOJ “rate check” late Friday, often seen as a precursor to intervention, pulled the pair back into the upper 156s; with Tokyo closed until Thursday, that risk now runs through thin liquidity. AUD/USD, at 0.7120, has no RBA meeting this week but a hike to 4.60% is priced at well above 80% for the 28–29 September meeting just beyond the weekend, leaving Wednesday’s flash PMIs and Thursday’s August labour force report as the last big domestic tests. Copper, at $6.63/lb, has climbed four sessions in a row on strong Chinese physical demand, while the Hang Seng, at 24,750, closed Friday up 0.6% — with the Hang Seng Tech Index up 2.2% — as investors positioned for a summit where a tariff-truce extension, farm and Boeing purchases, rare earths and chip curbs are all on the agenda. China’s August data was mixed, with industrial output beating at 5.2% but retail sales slowing to 0.4%, and Monday’s loan prime rate is expected to hold for a 16th straight month. In crypto, XRP at $1.33 and Litecoin at $55.00 enter the week after the Senate’s cloture vote on the CLARITY Act failed 49–50 on Tuesday, leaving SEC and CFTC rulemaking as the near-term regulatory path as spot ETF outflows continue and Bitcoin stalls below $79,000.
🇯🇵 Japan Closed Mon–Wed · Yen Intervention Watch 🇨🇳 China LPR Mon 21 Sep 🇦🇺 Flash PMI Wed · Jobs Thu 🤝 Xi–Trump Summit Thu 24 Sep 🏮 China Mid-Autumn Closure Fri 25 Sep
Section 1 · About the Asian Market This Week
A Washington summit, a yen on intervention watch and a countdown to the RBA’s 29 September decision land inside a holiday-shortened week: USD/JPY (156.80) trades thin with Tokyo shut until Thursday; AUD/USD (0.7120) waits on jobs data with a hike heavily priced; copper ($6.63/lb) and the Hang Seng (24,750) lean on the Xi–Trump meeting; and XRP ($1.33) and Litecoin ($55.00) trade the aftermath of the failed CLARITY Act vote.

1. USD/JPY — can the yen hold its ground through Silver Week with the BOJ checking rates? USD/JPY starts the week near 156.80 after the Bank of Japan lifted its policy rate to 1.25% on Friday. The 7–2 vote, with Toichiro Asada and Ayano Sato dissenting, together with Governor Ueda’s data-dependent tone and refusal to set a timetable, disappointed traders hoping for a faster tightening path; the yen slid 1.3% at one point, sending the pair to 158.06. A Nikkei report that the BOJ made a rate check with market participants late Friday pulled it back to the upper 156s. Japan’s national CPI on Friday was soft, with core inflation at 1.7%, the eighth straight month below the 2% target, which explains the dissents. With Tokyo closed Monday through Wednesday, the Federal Reserve’s hawkish 25-basis-point hike to 3.75–4.00% and a median dot pointing to another 2026 increase keep the dollar side supported, while officials who already ran a joint US–Japan intervention earlier this summer have shown discomfort with moves toward 158.

2. AUD/USD — no RBA meeting, but the countdown to 29 September drives the Aussie. AUD/USD trades near 0.7120 after dipping to 0.7087 on Thursday in the wake of the Fed. The RBA’s next decision is 28–29 September, so there is no policy meeting this week, yet markets price a quarter-point hike to 4.60% at somewhere between roughly 80% and 96% depending on the gauge, after Governor Michele Bullock told a parliamentary committee on Friday that upside risks to inflation appear to be materialising. Wednesday’s flash PMIs and Thursday’s August labour force report — employment is expected to rise about 20,000 after July’s 15,800 drop, with unemployment steady at 4.5% — are the main scheduled inputs, alongside Chinese demand signals from Monday’s LPR and Thursday’s summit.

3. Copper and the Hang Seng — China demand and a leaders’ summit. Copper at $6.63/lb has gained four sessions in a row, helped by China’s Yangshan premium climbing to $121 a ton, its highest since November 2022, and by a delay to the Trump administration’s decision on refined copper tariffs; it remains under the August record near $6.83. The Hang Seng closed Friday at 24,750 after a 0.6% gain led by technology, with mainland stocks logging their best day in a month, as investors bet that Thursday’s meeting between Xi and Trump will ease trade tensions. Beijing’s fiscal-support signals and a Hong Kong Monetary Authority base-rate rise to 4.25% after the Fed frame the domestic backdrop, and August activity data — factory output +5.2% but retail sales just +0.4% and fixed-asset investment down 7.2% year to date — kept the growth debate alive.

4. XRP and Litecoin — life after the CLARITY Act’s failed vote. XRP at $1.33 and Litecoin at $55.00 trade the aftermath of the Senate’s 49–50 cloture defeat of the Digital Asset Market Clarity Act on Tuesday. Senator Thom Tillis’s motion to reconsider leaves a procedural door open, but Senator Cynthia Lummis has said the bill will not return soon and colleagues point to the lame-duck session at best. That shifts attention to the SEC’s “Regulation Crypto Assets” proposal, open for comment until 20 October, and to ongoing CFTC work. With spot crypto ETFs on track for a second straight week of outflows above $420 million and Bitcoin capped below its 50-week average near $78,760, both tokens enter a week of thin Asian holiday liquidity with Litecoin bouncing off the $50 zone and XRP holding the low $1.30s.

USD/JPY
156.80
▲ Firmer after BOJ dissents; rate check
Tokyo shut Mon–Wed; intervention risk in thin liquidity
AUD/USD
0.7120
▼ Softer on the week; hike heavily priced
No RBA meeting; decision 28–29 Sep, jobs data Thu
Copper (COMEX)
$6.63/lb
▲ Fourth straight daily gain
China demand and Xi–Trump summit in view
Hang Seng
24,750
▲ +0.6% Friday on summit hopes
China holiday Fri; HKEX trades, thin liquidity
Litecoin
$55.00
▲ Third session of recovery from $50
CLARITY Act stalled; SEC rulemaking next
XRP
$1.33
■ Holding low $1.30s after CLARITY vote
Vote failed 49–50; regulators now the path
Section 2 · What Moves Markets This Week

Four Forces That Will Drive the Asian Session — 21 to 25 September 2026

The scheduled Asian-session catalysts that will set the direction across FX, commodities, equities, and digital assets for the week of 21–25 September 2026

🤝
Force 1 · The Xi–Trump State Visit Is the Week’s Marquee Event for China-Linked Assets
Chinese President Xi Jinping is due in Washington on Thursday for his second summit with Donald Trump this year. The agenda is broad: a possible extension of the tariff truce, Chinese purchases of US farm goods and Boeing aircraft, access to rare earths and critical minerals, Beijing’s push for relief from technology curbs, plus Taiwan and Iran. Reports of talks on trimming the tariff on US LNG and a mutual tariff cut on about $30 billion of goods have built expectations, so the Hang Seng, copper and AUD/USD all carry some optimism into the meeting — and risk a “sell the fact” reaction if outcomes disappoint.
🇯🇵
Force 2 · A Yen Under Intervention Watch While Tokyo Is Closed for Three Days
After the BOJ’s 7–2 hike to 1.25% failed to convince markets that more tightening is coming fast, the yen weakened to 158.06 before a reported BOJ rate check pulled it back. Japan’s markets are shut Monday to Wednesday for Silver Week, reopening Thursday with the new rate effective 24 September and the flash PMI and, on Friday, Tokyo CPI to digest. Thin liquidity has been a recurring feature of past yen operations, so USD/JPY can move sharply on headlines from Japan’s Ministry of Finance, US Treasury comments or Xi–Trump outcomes.
🇦🇺
Force 3 · A Hawkish Fed Backdrop Meets the Run-Up to the RBA’s 29 September Decision
The Fed lifted rates to 3.75–4.00% with a unanimous vote and a median dot pointing to another 2026 hike; Goldman Sachs now expects October. That keeps the dollar and Treasury yields, which briefly topped 5% on the 10-year, as the global anchor. In Australia, hike odds for the RBA’s 28–29 September meeting sit far above 80%, so Wednesday’s flash PMIs and Thursday’s labour force data matter mainly for whether AUD/USD can hold above 0.7100 as the US dollar stays firm.
⚖️
Force 4 · Crypto Trades the Aftermath of the CLARITY Act’s Failed Senate Vote
The Senate’s 49–50 cloture vote on Tuesday, with every Democrat and several Republicans opposed over ethics language, stalled the bill. Tillis’s motion to reconsider keeps a procedural route alive, though lawmakers now point to the lame-duck session at best. Attention shifts to the SEC’s Regulation Crypto Assets proposal, open for comment until 20 October, and CFTC spot-market work. With spot crypto ETFs still seeing outflows, Bitcoin below $79,000 and Asian holiday liquidity thin, XRP and Litecoin have few token-specific catalysts this week.

Section 3 · Key Levels to Watch

Asian Session Weekly Levels & Bias

Six instrument-specific reference levels for the week of 21–25 September 2026. All levels for reference and informational purposes only; not financial advice. Visit capitalstreetfx.com for live signals and other markets.

USD/JPY
156.80
▲ Firmer after BOJ hike disappointed; rate check pared gains
■ NEUTRAL / TWO-WAY RISK · WATCH 154.80 SUPPORT, 158.10 RESISTANCE
Support
154.80
Pivot
156.80
Resistance
158.10

What to Watch — Can the Yen Hold Its Ground Through Silver Week With a BOJ Rate Check in the Background?

USD/JPY starts the week near 156.80 after touching 158.06 on Friday, when the Bank of Japan raised its policy rate to 1.25% but two members dissented and Governor Ueda gave no timetable for further increases. A Nikkei report that the BOJ conducted a rate check with market participants late Friday cut the pair’s gains and signals officials remain uncomfortable near 158, particularly after this summer’s joint US–Japan intervention that pulled the pair from around 164 to the mid-155s.

With Tokyo closed from Monday to Wednesday, thin liquidity raises the odds of sharp headline-driven moves. The 158 area is the level to watch on the topside; the 154.80 zone is the first support if the yen rallies on intervention or a dovish dollar turn. The Thursday reopening brings the Japan flash PMI and the new rate taking effect, while Friday’s Tokyo CPI is the last domestic input of the week.

USD/JPY weekly chart with Fibonacci retracement, moving averages and RSI
Chart by TradingView
AUD/USD
0.7120
▼ Softer on the week; RBA hike ~80%+ priced
■ NEUTRAL / WATCH 0.7050 SUPPORT, 0.7210 RESISTANCE
Support
0.7050
Pivot
0.7120
Resistance
0.7210

What to Watch — No RBA Meeting, but Jobs Data and a Priced-In Hike Do the Heavy Lifting

AUD/USD trades near 0.7120 after slipping 0.6% to 0.7087 on Thursday following the Fed’s hike and rebounding on hawkish RBA commentary. The RBA’s next meeting is 28–29 September, with a quarter-point hike to 4.60% priced at roughly 80% to 96% depending on the measure; UBS sees two more hikes taking the cash rate to 4.85%. With that priced, the data has more room to disappoint than to surprise.

Wednesday’s Australian flash PMIs and Thursday’s August labour force report (employment seen around +20,000 after July’s −15,800, unemployment at 4.5%) are the key scheduled events, while Xi–Trump headlines matter for China-sensitive Aussie flows. UOB has flagged risk toward 0.7050 while the pair stays below 0.7140; a move through 0.7210 would put the early-September highs back in view.

AUD/USD weekly chart with Fibonacci retracement, moving averages and RSI
Chart by TradingView
Copper (COMEX)
$6.63/lb
▲ Fourth straight daily gain on Chinese buying
▲ CONSTRUCTIVE / WATCH $6.43 SUPPORT, $6.83 RESISTANCE
Support
$6.43
Pivot
$6.63
Resistance
$6.83

What to Watch — China’s Demand Signals and the Xi–Trump Meeting Test the Rally

Copper at $6.63/lb has gained four sessions in a row, supported by strong Chinese physical demand: the Yangshan premium reached $121 a ton on Thursday, its highest since November 2022, while data-centre and renewable demand and mine supply disruptions provide a longer-term backdrop. Earlier in the week prices dipped after reports that the Trump administration delayed a decision on tariffs on refined copper.

This week’s tests are Monday’s China loan prime rate, Thursday’s Xi–Trump summit — where any tariff truce extension, critical minerals or export-control news feeds directly into industrial-metals sentiment — and whether Chinese restocking persists ahead of Golden Week from 1 October. Fresh LME inflows have pushed London copper into contango, a reminder near-term supply is ample. The August record near $6.83 is the topside marker, with the $6.43 area the first level to defend.

Copper weekly chart with Fibonacci retracement, moving averages and RSI
Chart by TradingView
Hang Seng Index
24,750
▲ +0.6% Friday; Tech Index +2.2% on summit hopes
■ NEUTRAL / WATCH 24,358 SUPPORT, 25,050 RESISTANCE
Support
24,358
Pivot
24,750
Resistance
25,050

What to Watch — Summit Optimism Meets Higher Rates and a Holiday-Thinned Friday

The Hang Seng closed Friday at 24,750, up 0.6%, with the Hang Seng Tech Index up 2.2% as chip and AI names rallied and mainland stocks logged their best day in a month. The index was little changed on the week, after the Fed’s hike, Treasury yields above 5% and a Hong Kong Monetary Authority base-rate rise to 4.25% pressured property and financial shares. Investors are betting that Thursday’s Xi–Trump meeting delivers steps such as a tariff truce extension or a mutual tariff cut on about $30 billion of goods.

Watch Monday’s loan prime rate, expected unchanged at 3.00% and 3.50% for a 16th month, and any Beijing stimulus headlines after August data showed factory output up 5.2% but retail sales just 0.4% and fixed-asset investment down 7.2%. On Friday, Shanghai and Shenzhen are shut for Mid-Autumn while the Hong Kong holiday falls on Saturday, so HKEX trades with Stock Connect closed and thinner liquidity. Renewed AI-chip export-control headlines from Washington are a risk to the tech rally.

Hang Seng Index weekly chart with Fibonacci retracement, moving averages and RSI
Chart by TradingView
Litecoin (LTC)
$55.00
▲ Third straight session of recovery from $50
■ NEUTRAL / WATCH $50.00 SUPPORT, $63.70 RESISTANCE
Support
$50.00
Pivot
$55.00
Resistance
$63.70

What to Watch — A Beta Play on Crypto Sentiment After the CLARITY Act Stumbles

Litecoin at $55.00 has recovered for a third straight session from the $50 support zone, but it lacks a token-specific catalyst and trades largely as a beta play on broader crypto sentiment. Bitcoin, above $78,000, is capped by its 50-week average near $78,760, and spot crypto ETFs are on course for a second week of outflows exceeding $420 million.

The $50 area is the level to defend for the recovery to stay intact, while a push toward $63.70 would need improved risk appetite after the failed CLARITY Act vote and a hawkish Fed. Asian holiday closures thin liquidity late in the week, which can exaggerate moves in smaller-cap tokens.

Litecoin (LTC/USD) weekly chart with Fibonacci retracement, moving averages and RSI
Chart by TradingView
XRP
$1.33
■ Holding low $1.30s after the CLARITY Act vote failed
▼ CAUTIOUS / WATCH $1.234 SUPPORT, $1.55 RESISTANCE
Support
$1.234
Pivot
$1.330
Resistance
$1.550

What to Watch — Regulators, Not Congress, Now Set the Near-Term Regulatory Path

XRP at $1.33 ended the week roughly flat despite the Senate’s 49–50 cloture defeat of the CLARITY Act, which was widely priced by prediction markets. Tillis’s motion to reconsider keeps a procedural option, but Senator Lummis has said the bill is unlikely to return, and colleagues point to the lame-duck session at best.

Attention shifts to the SEC’s Regulation Crypto Assets proposal, open for comment until 20 October, and to CFTC spot-market work. A hold above $1.234 keeps the recent structure intact, while a break lower would leave the token vulnerable to a retest of the low-$1.20s. The $1.55 level, near the August rally high, is the topside reference. Thin holiday liquidity and ETF outflows are near-term headwinds.

XRP/USD weekly chart with Fibonacci retracement, moving averages and RSI
Chart by TradingView

Section 4 · Key Catalysts

What Could Move Asian Markets Sharply This Week

The scheduled and unscheduled events that CSFX is watching most closely for the Asian session, 21–25 September 2026

GEOPOLITICS / TRADE
Xi Jinping’s State Visit to Washington — Thursday
Xi meets Donald Trump in Washington on Thursday, with a state dinner expected that evening, meaning the headlines arrive in the late Asian evening and overnight into Friday. Agenda items include a potential extension of the tariff truce, Chinese purchases of US agriculture and Boeing aircraft, rare earths access, technology restrictions, Taiwan and Iran. A House China panel chair has urged tougher AI-chip export controls, a reminder that friction remains despite the positive tone.
FX / CENTRAL BANK
Yen Intervention Risk Through Japan’s Silver Week — Mon–Wed
Japan’s exchanges and banks are closed 21–23 September for Respect for the Aged Day, a citizens’ holiday and Autumnal Equinox Day. The BOJ’s reported rate check late Friday, the yen’s slide toward 158 after a split hike, and the earlier joint US–Japan intervention leave USD/JPY prone to sudden jumps in thin liquidity, with the new 1.25% rate effective 24 September.
MACRO
China Loan Prime Rate and Beijing Stimulus — Monday
The PBoC is expected to hold the one-year LPR at 3.00% and the five-year at 3.50% for a 16th consecutive month, with policymakers leaning on targeted measures rather than broad easing. Mainland stocks rallied on Friday on fiscal-support hopes after August retail sales slowed to 0.4% and fixed-asset investment fell 7.2% year to date, so any unexpected cut or new stimulus detail would move the Hang Seng, copper and AUD/USD.
MACRO
Australian Flash PMIs (Wed) and August Labour Force (Thu)
With the RBA meeting only days away, Thursday’s labour force report (employment about +20,000, unemployment 4.5%) is the week’s main Australian input, though the RBA is seen as unlikely to change its stance on one report. Japan’s flash PMI, due Thursday when Tokyo reopens, is expected to show manufacturing near 54.8 and services near 52.6.
GEOPOLITICS
Middle East Tensions and Oil Near $100 — Ongoing
Oil eased on Friday, with WTI settling at $96.08 after Brent slipped below $104 on Thursday, but the Iran conflict and Houthi operations against Saudi Arabia keep an energy-driven inflation premium in bond yields. Donald Trump said the US is talking to the Houthis while leaving action against Iran open. Renewed escalation would pressure Asian equities and importers such as Japan and could strengthen the dollar.
CRYPTO / POLICY
Post-CLARITY Regulatory Path — SEC and CFTC Rulemaking
After the Senate’s 49–50 cloture defeat, industry attention turns to the SEC’s Regulation Crypto Assets proposal, open for comment until 20 October, and CFTC drafting under existing authority. Senator Tillis’s motion to reconsider keeps a procedural route open, but any revival looks more likely in the lame-duck session than this week, so ETF flows and macro sentiment will drive XRP and Litecoin more than legislation.

Section 5 · Economic Calendar

Asian Session — Economic Calendar, 21–25 September 2026

All times approximate, Hong Kong Time (HKT, UTC+8) unless noted; confirm exact release times before trading. Key releases and events for USD/JPY, AUD/USD, Copper, Hang Seng, Litecoin, and XRP.

Day Time (HKT) Release / Event Impact Relevance CSFX View
Monday, 21 September
MonAll day Japan Market Holiday — Respect for the Aged Day (Tokyo closed) Medium USD/JPY Yen trades in thinner liquidity after Friday’s BOJ rate check; watch for MoF or Treasury headlines.
Mon~09:15 HKT China Loan Prime Rate (1Y 3.00%, 5Y 3.50% expected) Medium Hang Seng, Copper, AUD/USD Seen unchanged for a 16th month; a surprise cut would signal greater concern about growth.
Tuesday, 22 September
TueAll day Japan Market Holiday — Citizens’ Holiday (Tokyo closed) Medium USD/JPY Second closed day; intervention risk continues.
Tue~01:00 HKT (Wed) US 2-Year Treasury Note Auction ($78 bn) Low USD/JPY, AUD/USD Demand read on front-end yields after the Fed hike and 10-year yield’s spike above 5%.
Wednesday, 23 September
WedAll day Japan Market Holiday — Autumnal Equinox Day (Tokyo closed) Medium USD/JPY Tokyo reopens Thursday; the BOJ’s new 1.25% rate takes effect 24 September.
Wed~07:00 HKT (TBC) Australia Flash PMIs (Sep) Medium AUD/USD A demand and price-pressure read days before the RBA’s 28–29 September meeting.
Wed~21:45 HKT (TBC) US Flash PMIs (Sep) Medium USD/JPY, AUD/USD, Hang Seng Tests the US growth story after the Fed hike; a firm print supports the dollar into Thursday’s Asian open.
Thursday, 24 September
Thu~08:30 HKT Japan Flash PMI (Sep) — first Tokyo session after the break Medium USD/JPY Manufacturing seen near 54.8, services near 52.6; price components also in focus.
Thu~09:30 HKT Australia Labour Force Survey (Aug) High AUD/USD Employment seen around +20,000 after −15,800 in July, unemployment steady at 4.5%; the RBA is seen as hiking regardless.
ThuThu night–Fri early HKT (TBC) Xi–Trump State Visit and White House Talks / State Dinner High Hang Seng, Copper, AUD/USD Tariff truce extension, ag/Boeing purchases, rare earths and chip curbs are in focus.
ThuAll day South Korea Market Holiday — Chuseok (Thu–Fri) Low Regional risk Adds to thin Asian liquidity late in the week.
Friday, 25 September
Fri~07:30 HKT (TBC) Tokyo CPI (Sep) Medium USD/JPY Leading read on inflation after national core CPI stayed below 2% at 1.7% in August.
FriAll day China Mid-Autumn Festival — Shanghai/Shenzhen and Stock Connect closed; Taiwan closed; HKEX open Medium Hang Seng, Copper Hong Kong’s holiday falls on Saturday; expect thin liquidity and headline-driven moves post-summit.
Fri~20:30 HKT US Durable Goods Orders (Aug) Low USD/JPY, AUD/USD A capex read to close the week for the dollar.
WeekendSat–Sun Crypto trades 24/7; RBA meeting begins Monday 28 September Medium XRP, Litecoin, AUD/USD Weekend liquidity can be thin; positioning for the RBA and the SEC comment period continues.

Section 6 · FAQ

Asian Session — Trader Questions Answered

Key questions from CSFX clients ahead of Xi’s Washington visit, the yen intervention watch, the RBA run-up and the post-CLARITY crypto backdrop

Why does Thursday’s Xi–Trump meeting matter so much for Asian markets?
Because it is the clearest near-term catalyst for China-linked assets. Talks are expected to cover a possible extension of the existing tariff truce, Chinese purchases of US agricultural goods and Boeing aircraft, access to rare earths and critical minerals, and Beijing’s push for relief from technology curbs. Markets have already rallied on the prospect of easing tensions, with mainland stocks posting their best day in a month on Friday, so results that fall short of expectations could lead to a “sell the fact” reaction in the Hang Seng, copper and AUD/USD.
Japan is closed Monday to Wednesday — why does that matter for the yen?
Japanese banks and exchanges close on 21, 22 and 23 September for Silver Week, with Tokyo reopening Thursday. That means the yen trades in thinner liquidity right after a BOJ rate check and a slide toward 158 on Friday, and past intervention episodes have often happened in thin conditions. It does not guarantee intervention, and officials rarely confirm such action in advance, so treat USD/JPY as two-way risk with a sharp downside tail.
The BOJ hiked to 1.25% — why did the yen fall?
The hike was widely expected, so the yen reacted to the details: a 7–2 vote with two dissenters favouring no change, no updated forecasts, and a Governor Ueda press conference that gave no timetable for further increases and said it was hard to pin down a terminal rate. Traders who hoped for a faster tightening signal were disappointed and the yen fell as much as 1.3%, before a reported rate check trimmed the move. The new rate takes effect on 24 September.
Is there an RBA meeting this week, and what should AUD/USD traders watch?
No. The RBA meets on 28–29 September, with the decision on the 29th and a hike from 4.35% to 4.60% priced at roughly 80% to 96% depending on the gauge. This week’s inputs are Wednesday’s flash PMIs and Thursday’s August labour force report (employment seen about +20,000, unemployment 4.5%), along with China headlines and the US dollar’s reaction to the Fed’s hike. A very weak jobs print could trim hike odds, but Governor Bullock’s Friday remarks that inflation risks are materialising make a big repricing less likely.
What is left for XRP and Litecoin after the CLARITY Act’s failed vote?
The Senate’s cloture vote failed 49–50 on Tuesday, well short of the 60 required, after Democrats objected to ethics provisions. Senator Tillis filed a motion to reconsider, keeping a procedural path open, but lawmakers suggest any revival is more likely in the lame-duck session. Attention has shifted to the SEC’s Regulation Crypto Assets proposal, open for comment until 20 October, and CFTC work. Neither token has a scheduled catalyst of its own this week, so ETF flows, Bitcoin and macro sentiment are likely to dominate.
Which Asian markets are closed, and how does that affect liquidity?
Japan is closed Monday to Wednesday; South Korea is closed Thursday and Friday for Chuseok; and mainland China (Shanghai, Shenzhen and Stock Connect) and Taiwan are closed on Friday for the Mid-Autumn Festival. Hong Kong’s official holiday falls on Saturday, so HKEX is open Friday but with thinner participation. Traders should expect wider spreads and sharper reactions around the Xi–Trump headlines, and check their broker’s holiday schedule for instrument-specific trading hours.
CSFX View · Week of 21 September 2026

CSFX View: A Xi–Trump Summit, an Intervention-Primed Yen and an RBA Countdown Define a Holiday-Thinned Week


The week of 21–25 September 2026 opens the Asian session with USD/JPY at 156.80 after a split BOJ hike and a reported rate check, AUD/USD at 0.7120 counting down to the RBA’s 29 September decision, copper at $6.63/lb riding Chinese demand, and the Hang Seng at 24,750 leaning on hopes for Thursday’s summit in Washington. In crypto, XRP at $1.33 and Litecoin at $55.00 trade the aftermath of the failed CLARITY Act vote with regulators now setting the pace.

Thursday is the pivot day: Xi meets Trump in Washington, Tokyo reopens with a flash PMI, and Australia releases its August labour force data. Before it, thin holiday liquidity leaves the yen exposed to intervention headlines; after it, Friday’s Mid-Autumn closure of mainland exchanges and the RBA’s meeting on Monday and Tuesday keep positioning cautious. Outcomes on tariffs, rare earths and chip curbs will drive the Hang Seng, copper and AUD/USD, while a firm dollar and elevated yields remain the backdrop for every instrument.

CSFX will continue publishing intra-week updates as the Xi–Trump meeting, any yen intervention, Australia’s jobs data and China’s stimulus signals unfold. Follow all updates at capitalstreetfx.com.

New clients can also take advantage of a limited-time deposit bonus when they open an account this week, on top of the usual account benefits — tight spreads, high leverage, and access to 2000+ instruments across FX, commodities, indices, and crypto. Full terms and other promotions are available on the CSFX website.

Trade Asian Markets at CSFX →