MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

CHINA PBOC CONDUCTS CNY66.1 BILLION VIA 7-DAY REVERSE REPOS WEDS

CHINA SETS YUAN CENTRAL PARITY AT 7.1358 WEDS VS 7.1334

MNI BRIEF: China Wants U.S. Firms To Deepen Investment

MNI: US MBA: MARKET COMPOSITE -2.2% SA THRU JUL 19 WK

US MBA: REFIS +0.3% SA; PURCH INDEX -4% SA THRU JULY 19 WK

Market round-up post PMIs

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A$ Supported Sub 0.6500, Close To 50-Day EMA Resistance

AUD
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From highs near 0.6540, AUD/USD slumped post the stronger than expected PCE print in US trade. However, support was evident around 0.6485 and we track near 0.6520 in early Friday dealings. The A$ gained around 0.30% for Thursday's session, as most of the G10 posted gains against the USD.

  • Offsetting the firmer PCE read came weaker than expected Q1 GDP in the US. Still, in the yield space, Tsy yields were firmer across the benchmarks, the 2yr back close 5.0%, the 10yr to 4.70%, although we did close away from intra-session highs.
  • Equity sentiment was mostly negative for EU/US markets, although commodity prices were higher. The aggregate Bloomberg index up 0.3%, the metals sub index up 0.43%. Iron ore prices sit around $116.60/ton, off 1%, but copper was up over 1% providing some offset.
  • AUD/JPY continued to climb, the pair now around 101.45, fresh highs back to 2014. Yen weakness remains a feature as we approach today's BoJ decision.
  • For AUD/USD, the 50-day EMA is close by at 0.6526, but we haven't been able to sustain moves above this resistance level this week. 0.6441 is the Apr 23 low.
  • The local data calendar has Q1 PPI and Q1 trade prices today, while note the following for NY cut later in the option expiry space: $0.6540-50(A$545mln).
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From highs near 0.6540, AUD/USD slumped post the stronger than expected PCE print in US trade. However, support was evident around 0.6485 and we track near 0.6520 in early Friday dealings. The A$ gained around 0.30% for Thursday's session, as most of the G10 posted gains against the USD.

  • Offsetting the firmer PCE read came weaker than expected Q1 GDP in the US. Still, in the yield space, Tsy yields were firmer across the benchmarks, the 2yr back close 5.0%, the 10yr to 4.70%, although we did close away from intra-session highs.
  • Equity sentiment was mostly negative for EU/US markets, although commodity prices were higher. The aggregate Bloomberg index up 0.3%, the metals sub index up 0.43%. Iron ore prices sit around $116.60/ton, off 1%, but copper was up over 1% providing some offset.
  • AUD/JPY continued to climb, the pair now around 101.45, fresh highs back to 2014. Yen weakness remains a feature as we approach today's BoJ decision.
  • For AUD/USD, the 50-day EMA is close by at 0.6526, but we haven't been able to sustain moves above this resistance level this week. 0.6441 is the Apr 23 low.
  • The local data calendar has Q1 PPI and Q1 trade prices today, while note the following for NY cut later in the option expiry space: $0.6540-50(A$545mln).