BOC WILL BE CONSDIERING FURTHER RATE CUTS

BOC DOESN'T SEE A RECESSION, RATHER SLOW GROWTH

BOC SAYS WEAKER CAD DRIVEN BY USD STRENGTH

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -1.42M TO 422.0M DEC 06 WK

BOC CUTS RATE 50BPS TO 3.25%, SEES GRADUAL APPROACH FROM HERE

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

FOREX: Firmer China Equities Help NZD & A$, Yen Back near Early Aug Lows

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets

The USD BBDXY index sits off its recent highs, albeit marginally. The index last near 1243.75. Intra-session highs from Wednesday trade came close to 1244.5, which was fresh highs back to mid August and a test above the 200-day EMA. 

  • A slight USD pull back today has been aided by the better China/HK equity tone. The PBoC announced it has opened applications for a swap facility that is aimed at supporting local equity markets. The scheme was originally announced on Sep 24. However, it could be expanded beyond the initial size of CNY 500bn and broadened in terms of acceptable collateral as well (per onshore media).
  • The CSI 300 is up 2.85%, while the HSI in HK is up over 4% at this stage.
  • NZD/USD is outperforming in the G10 space, up around 0.40%, putting the pair last near 0.6085/90. We are still sub pre RBNZ levels from yesterday of 0.6135.
  • AUD/USD is also higher, but lagging NZD at the margins, the pair last near 0.6735. Inflation expectations fell to a multi year low of 4.0%y/y earlier.
  • Yen has faltered modestly. USD/JPY unable to breach 149.00 on the downside, the pair is tracking just under session highs (149.55), last near 149.45.Upside targets will now rest above 150.00 (150.76 50.0% retracement of the Jul 3 - Sep 16 bear leg).
  • Earlier data showed firmer than expected PPI for Sep in Japan but this did not give a lasting boost to JPY sentiment.
  • Coming up we will hear from a BoJ official in Tokyo at a BBG function. Also the RBA's Assistant Governor Hunter will appear on a panel session. Later on we have the US CPI print and more Fed speak in focus. 
281 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.

The USD BBDXY index sits off its recent highs, albeit marginally. The index last near 1243.75. Intra-session highs from Wednesday trade came close to 1244.5, which was fresh highs back to mid August and a test above the 200-day EMA. 

  • A slight USD pull back today has been aided by the better China/HK equity tone. The PBoC announced it has opened applications for a swap facility that is aimed at supporting local equity markets. The scheme was originally announced on Sep 24. However, it could be expanded beyond the initial size of CNY 500bn and broadened in terms of acceptable collateral as well (per onshore media).
  • The CSI 300 is up 2.85%, while the HSI in HK is up over 4% at this stage.
  • NZD/USD is outperforming in the G10 space, up around 0.40%, putting the pair last near 0.6085/90. We are still sub pre RBNZ levels from yesterday of 0.6135.
  • AUD/USD is also higher, but lagging NZD at the margins, the pair last near 0.6735. Inflation expectations fell to a multi year low of 4.0%y/y earlier.
  • Yen has faltered modestly. USD/JPY unable to breach 149.00 on the downside, the pair is tracking just under session highs (149.55), last near 149.45.Upside targets will now rest above 150.00 (150.76 50.0% retracement of the Jul 3 - Sep 16 bear leg).
  • Earlier data showed firmer than expected PPI for Sep in Japan but this did not give a lasting boost to JPY sentiment.
  • Coming up we will hear from a BoJ official in Tokyo at a BBG function. Also the RBA's Assistant Governor Hunter will appear on a panel session. Later on we have the US CPI print and more Fed speak in focus.