MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

MNI: PBOC Conducts CNY2 Bln Via OMO Mon; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

MNI: PBOC Sets Yuan Parity Lower At 7.1043 Mon; -4.74% Y/Y

EZ/UK Bond Supply Calendar: EU, FI Synds; IT, DE Auctions Tues

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

NBH Data Watch

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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A$ Pulls Back To 50-Day EMA, As Equities/Commodities Weaken

AUD

AUD/USD saw an abrupt u-turn post the Asia close. We topped out near 0.6770 and dropped more than 100 pips through London/NY trading. Thinning liquidity may added to the downside momentum. We got to 0.6650 in NY before stabilizing, with the pair last around 0.6665/70. This is very close to the 50-day EMA (0.6663). A clear break of the EMA is required to suggest scope for a deeper pullback and 0.6629, this week's low, is seen as a key short-term support.

  • Cross asset headwinds weighed on the A$. Risk appetite faltered in the equity space, with US and EU equities off more than 1%, although we closed away from the lows. The VIX closed near 22%, but got as high as 24.30%. AUD/JPY pulled back to the low 88.00 region, compared with 89.25/30 highs late yesterday.
  • Firmer US data in terms of an upward GDP revision saw a rebound in US cash Tsy yields, led by the front end (2yr +6bps to 4.27%). Aggregate commodity indices were also weaker, down over 1.6% for the main Bloomberg index, near 1% for base metals. Iron ore is back below $110/tonne.
  • There is nothing major scheduled for the local data calendar today.
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