MNI China Daily Summary: Tuesday, October 8

MNI BRIEF: Japan's Sept Sentiment, Outlook Indexes Fall

MNI BRIEF: China Local Govs To Speed Up Fiscal Spending

MNI: PBOC Net Drains CNY886.9 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Higher At 7.0709 Tues; +4.18% Y/Y

CHINA PBOC CONDUCTS CNY41.7 BLN VIA 7-DAY REVERSE REPOS TUES

MNI: US REDBOOK: OCT STORE SALES +5.3% V YR AGO MO

MNI: US AUG TRADE GAP -$70.4B VS JUL -$78.9B

US NFIB SEP SMALL BUSINESS INDEX 91.5

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: AUD Undermined by Soft Iron Ore, China Presser

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets
  • A press conference held by China's NDRC appeared to disappoint markets in stopping short of material commitments to considerable stimulus - helping drive risk sentiment lower via soft equities in Asia-Pac trade - although the impact moderated sharply into the European open. Nonetheless, a softer view of China's growth push has worked against AUD, undermined by the softer iron ore price, keeping the EUR/AUD bounce in tact as price shows above the 1.6344 100-dma.
  • The USD was offered through the European open, aided by a break above the overnight low in USD/JPY and the NY high in EUR/USD - at 147.51 and 1.0987 respectively.
  • ECBspeak has been thick and fast across the morning, with both Vasle and Nagel talking up the openness of the October meeting for the next rate cut step - the firm consensus for markets. This has kept EUR/GBP pressured toward recent lows - but further downside conviction may need to emerge outside of the ECB monpol channel.
  • Fed's Kugler made her first post-NFP comments on FOMC policy today, sticking to a dovish theme in flagging the "serious" reduction in inflation as well as citing several metrics that point toward a cooling labour market, affirming that Kugler is likely to opt for further rate cuts ahead "if inflation recedes".
  • Focus for the duration of Tuesday trade rests on US/Canadian trade balance data as well as appearances from ECB's Centeno & Nagel and Fed's Bostic & Collins. 
237 words

To read the full story

Close

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.
  • A press conference held by China's NDRC appeared to disappoint markets in stopping short of material commitments to considerable stimulus - helping drive risk sentiment lower via soft equities in Asia-Pac trade - although the impact moderated sharply into the European open. Nonetheless, a softer view of China's growth push has worked against AUD, undermined by the softer iron ore price, keeping the EUR/AUD bounce in tact as price shows above the 1.6344 100-dma.
  • The USD was offered through the European open, aided by a break above the overnight low in USD/JPY and the NY high in EUR/USD - at 147.51 and 1.0987 respectively.
  • ECBspeak has been thick and fast across the morning, with both Vasle and Nagel talking up the openness of the October meeting for the next rate cut step - the firm consensus for markets. This has kept EUR/GBP pressured toward recent lows - but further downside conviction may need to emerge outside of the ECB monpol channel.
  • Fed's Kugler made her first post-NFP comments on FOMC policy today, sticking to a dovish theme in flagging the "serious" reduction in inflation as well as citing several metrics that point toward a cooling labour market, affirming that Kugler is likely to opt for further rate cuts ahead "if inflation recedes".
  • Focus for the duration of Tuesday trade rests on US/Canadian trade balance data as well as appearances from ECB's Centeno & Nagel and Fed's Bostic & Collins.