MNI BOK WATCH: More Evidence Needed To Cut Rates, Says Rhee

MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1339 THURS VS 7.1342

MNI BRIEF: Bank of Korea Keeps Policy Rate At 3.50%

Activity data stronger-than-expected; little impact on near-term monpol

MNI: GERMANY JUNE FINAL HICP +2.5 % M/M, +0.2% Y/Y

MNI: GERMAN JUN CPI +2.2 % Y/Y

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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

Risk Currencies Buoyed By Potentially More China Property Support

FOREX
BulletMarketsForeign Exchange BulletsHomepage

Risk currencies have continued to outperform, with the latest leg higher driven by headlines that China is mulling further support for the troubled onshore property sector.

  • China is contemplating a significant proposal to address its struggling property market by having local governments purchase millions of unsold homes, with the aim of converting them into affordable housing (per Bloomberg).
  • Both AUD and NZD are +0.30% firmer against the USD. AUD/USD was last around 0.6645/50, just off session highs (0.6651). This right around the May 3 high, while 0.6668 represents the Mar 8 high and is also viewed as key short term resistance.
  • The currency largely shrugged off a slightly weaker than expected Q1 wages print. Commodities are higher, led by copper, although iron ore is showing less enthusiasm to the China news, the active contract last near $114/ton.
  • NZD/USD was last near 0.6060, not too far from the 200-day EMA (0.6068).
  • USD/JPY is close to unchanged, last around 156.40/45. This leaves the yen weaker on crosses, particularly AUD and NZD.
  • In the cross asset space, US equity futures sit a touch higher, while regional equities are mostly higher. China mainland markets are lower, but property sub-indices are higher.
  • US yields are relatively steady. The BDXY sits down a touch, last at 1251.2 (off just under 0.10%).
  • Looking ahead we have the US CPI as the main focus point coming up. Outside of the US inflation print, appearances from ECB's Rehn, Muller, Villeroy & Makhlouf and Fed's Kashkari & Bowman are due.
250 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.

Risk currencies have continued to outperform, with the latest leg higher driven by headlines that China is mulling further support for the troubled onshore property sector.

  • China is contemplating a significant proposal to address its struggling property market by having local governments purchase millions of unsold homes, with the aim of converting them into affordable housing (per Bloomberg).
  • Both AUD and NZD are +0.30% firmer against the USD. AUD/USD was last around 0.6645/50, just off session highs (0.6651). This right around the May 3 high, while 0.6668 represents the Mar 8 high and is also viewed as key short term resistance.
  • The currency largely shrugged off a slightly weaker than expected Q1 wages print. Commodities are higher, led by copper, although iron ore is showing less enthusiasm to the China news, the active contract last near $114/ton.
  • NZD/USD was last near 0.6060, not too far from the 200-day EMA (0.6068).
  • USD/JPY is close to unchanged, last around 156.40/45. This leaves the yen weaker on crosses, particularly AUD and NZD.
  • In the cross asset space, US equity futures sit a touch higher, while regional equities are mostly higher. China mainland markets are lower, but property sub-indices are higher.
  • US yields are relatively steady. The BDXY sits down a touch, last at 1251.2 (off just under 0.10%).
  • Looking ahead we have the US CPI as the main focus point coming up. Outside of the US inflation print, appearances from ECB's Rehn, Muller, Villeroy & Makhlouf and Fed's Kashkari & Bowman are due.