-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessCORRECTION: Yuan On Back Foot After Weaker PBOC Fix, Monthly Contraction In Home Prices
PBOC action and the release of Chinese data has coincided with a fresh bout of volatility in spot USD/CNH. The rate first pulled back from its session high of CNH6.3819 after the PBOC boosted its daily liquidity injection to CNY100bn (which meant a net injection of CNY90bn), citing tax and gov't bond issuance payments as reasons for the enlarged injection. A rebound in USD/CNH followed promptly, as China's new home prices declined for the first time in six years. The data came out at the same time when the PBOC left their LPR unchanged for the 18th month, in line with consensus.
- Elsewhere, China's central bank set their central USD/CNY mid-point at CNY6.4069, 27 pips above sell-side estimate. A slightly weaker than expected fixing may be a sign that that the PBOC are feeling a degree of discomfort about the yuan's sharp appreciation yesterday.
- On the data front, China's new home prices rose 3.27% Y/Y in September but slipped 0.08% M/M. The monthly decline was the first one since 2015, adding to concerns about the condition of the local housing market. As a reminder, recent GDP data showed that China's systemically significant property sector contracted for the first time since the onset of the pandemic in Q3.
- Meanwhile, the NDRC said yesterday that they are looking into ways of intervening in the coal market to rein in surging prices. They pledged commitment to a "zero tolerance" policy toward those spreading false information or colluding in the market and anticipated an increase in daily coal output to 12mn tons.
- USD/CNH trades +68 pips at CNH6.3831 as we type. The rate rejected support from a trendline drawn off its 2018 low yesterday, which gives bulls hope for a stronger rebound. A move through yesterday's high of CNH6.4290 would shift focus to Oct 12 high of CNH6.4644. Meanwhile, the 50-DMA has just crossed below the 100-DMA and bears look for a successful repeat of the attack at the aforementioned trendline support, which kicks in at CNH6.3669. Below there opens up CNH6.3525, which limited losses on May 31.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.