AUSSIE 10-YEAR TECHS

(H1) New Multi-Month Lows

AUSSIE 3-YEAR TECHS

(H1) Recovering From the Lows

USDCAD TECHS

New Cycle Lows

AUDUSD TECHS

Directional Triggers Defined

EURJPY TECHS

Recovers Well Off Wednesday Low

USDJPY TECHS

Pulling Away From The Channel Top

     POLICY: The 7-day weighted average interbank repo average rate for
depository institutions (DR007) declined by 2 basis points to 2.67% from
yesterday, the People's Bank of China (PBOC) said in a statement on its website
today. The central bank has injected total CNY400 billion of liquidity via
reverse repo for three consecutive trading day this week, following its
36-day-long suspension of open market operations. The liquidity of the banking
system is kept reasonable and ample, and the market interest rate is moving
steadily, the PBOC said.
     TRADE WAR: China and the U.S. held a vice-minister rank dialogue on
Wednesday to discuss trade issues of mutual concerns, the commerce ministry said
in a statement on its website, without disclosing further details.
     LIQUIDITY: The PBOC injected CNY40 billion via seven-day reverse repos, and
CNY20 billion through 14-day reverse repos today, adding liquidity for a third
straight trading day. It resulted in a net injection of CNY60 billion in
liquidity, as no reverse repos mature today, according to Wind Information.
     RATE: The 7-day weighted average interbank repo average rate for depository
institutions (DR007) decreased to 2.6726% from Tuesday's close of 2.6898%, Wind
Information showed. The overnight repo average decreased to 2.6417% from
Tuesday's 2.6627%.
     YUAN: The yuan depreciated to 6.8954 against the U.S. dollar from Tuesday's
close of 6.8927. The PBOC set the dollar/yuan central parity rate at 6.8869
today, as the yuan weakened a touch from Tuesday's 6.8854.
     BONDS: The yield on the benchmark 10-year China Government Bond was last at
3.3500%, down from the closing price of 3.3725% on Tuesday, according to Wind
Information.
     STOCKS: The benchmark Shanghai Composite Index closed 1.05% lower at
2,549.56. Hong Kong's Hang Seng Index increased 0.20% to 25,865.39.
     FROM THE PRESS: It is still possible for the central bank to cut the
Reserve Requirement Ratio (RRR) in the next three to six months, as the
authorities aim to drain short-term liquidity but inject long-term liquidity,
said China Securities Journal today citing Hu Yuexiao, chief macroeconomic
analyst at Shanghai Securities. Hu also pointed out that the current 8% y/y
growth of M2 is at the bottom of the range that policymakers would allow, so the
money supply could rebound going forward to help stabilize economic growth and
prevent risks, the newspaper said.
     Going forward, policies to reduce tariffs and promote trade will continue
to be introduced, the Shanghai Securities Journal said today citing Mei Xinyu, a
researcher at the Institute of Foreign Trade under the Ministry of Commerce. The
policy direction for expanding imports will not change, with imports expected to
maintain a growth rate of 10% or higher next year, the newspaper citing Gao
Lingyun, a researcher at the Institute of World Economics and Politics under the
Chinese Academy of Social Sciences.
     In the two months since the PBOC gave guidance for new bond finance support
tools, there have been 182 bond launches, totalling CNY111.12 billion, issued to
ease financing difficulties for private companies, 21st Century Business Herald
reported today citing data from Wind terminal. Some local state-owned
enterprises have set up funds to bail out private companies suffering from
liquidity problems. Though these two moves have significantly increased support
to private enterprises, it is still far from what the central government
required, the newspaper citing Fan Wei, a deputy fixed-income manager at brokers
Shenwan Hongyuan.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]