Risk Sentiment Sours On China's Renewed Private Sector Crackdown

Risk sentiment soured in reaction to a WSJ report noting that China's Pres Xi has ordered a "sweeping round of inspections of financial institutions" to uncover their ties with big private-sector businesses. Separately, Bloomberg circulated a report pointing to a round of antigraft inspections of China's financial regulators.

• The Antipodeans went offered amid broader risk aversion, CAD followed suit. Crude oil prices stabilised, thus failing to provide any support to commodity-tied FX.
• The yen outperformed in G10 FX space, albeit only marginally. USD/JPY pulled back from its best levels since late 2018, but remained in relatively close proximity to those levels.
• CNH reversed its initial loss, the PBOC set their central USD/CNY mid-point at CNY6.4447, 6 pips above sell-side estimate.
• KRW hit a fresh 2021 low against the greenback after the BoK announced their decision to leave interest rates on hold.
• Today's data highlights include German ZEW Survey & UK jobs data. Comments are due from a number of ECB speakers, including Pres Lagarde, as well as Fed's Clarida, Bostic & Barkin.