MNI China Daily Summary: Friday, October 11

MNI: GERMANY SEP FINAL HICP -0.1% M/M; +1.8% Y/Y

MNI: PBOC Net Drains CNY183.8 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.0731 Fri; +3.03% Y/Y

CHINA PBOC CONDUCTS CNY94.2 BLN VIA 7-DAY REVERSE REPOS FRI

CHINA SETS YUAN CENTRAL PARITY AT 7.0731 FRI VS 7.0742

MNI: GERMAN SEP CPI +1.6 % Y/Y

MNI: UK AUG TRADE BALANCE GBP -0.95BN

MNI: UK AUG CONSTRUCTION OUTPUT +0.4% MM, +1% 3M3M, +0.3% YY

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

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GOLD: Rebounds After Mixed US Data & Fedspeak

GOLD
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Gold is 0.5% higher in today’s Asia-Pac session, after closing 0.8% higher at $2629.74 on Thursday.

  • After six consecutive days of losses, bullion steadied after upside surprises in US CPI and jobless claims and mixed Fedspeak imparted conflicting signals over the size of the Federal Reserve’s expected rate cut next month.
  • In the US, easing expectations have been pared noticeably over the past week, with last Friday’s stronger-than-expected Non-Farm Payrolls report as the primary catalyst. Recent Fedspeak has assisted the move.
  • Yesterday, Atlanta Fed Bostic said the door is open to skip a rate cut in November. However, NY Fed Williams said policymakers should reduce rates to a more neutral level ‘over time’.
  • Lower rates are typically positive for gold, which doesn’t pay interest.
  • According to MNI’s technicals team, the yellow metal has pierced firm support at $2,615.9, the 20-day EMA, this week and a clear break would signal scope for a deeper retracement to $2,584.9, the Sep 20 low. On the upside, a continuation of gains would refocus attention on $2,690.2, a Fibonacci projection.
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Gold is 0.5% higher in today’s Asia-Pac session, after closing 0.8% higher at $2629.74 on Thursday.

  • After six consecutive days of losses, bullion steadied after upside surprises in US CPI and jobless claims and mixed Fedspeak imparted conflicting signals over the size of the Federal Reserve’s expected rate cut next month.
  • In the US, easing expectations have been pared noticeably over the past week, with last Friday’s stronger-than-expected Non-Farm Payrolls report as the primary catalyst. Recent Fedspeak has assisted the move.
  • Yesterday, Atlanta Fed Bostic said the door is open to skip a rate cut in November. However, NY Fed Williams said policymakers should reduce rates to a more neutral level ‘over time’.
  • Lower rates are typically positive for gold, which doesn’t pay interest.
  • According to MNI’s technicals team, the yellow metal has pierced firm support at $2,615.9, the 20-day EMA, this week and a clear break would signal scope for a deeper retracement to $2,584.9, the Sep 20 low. On the upside, a continuation of gains would refocus attention on $2,690.2, a Fibonacci projection.