MNI China Daily Summary: Friday, April 19

MNI BRIEF: China Hog Market More Balanced In Q2 - Ministry

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

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Higher At 7.1046 Fri; -5.03% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1046 FRI VS 7.1020

EZ/UK Bond Supply Calendar: EU, UK Synd W/C 22 Apr, BoE APF Mon

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

INE Business Confidence Data Supports Upward Revisions In Q1 GDP Forecasts

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

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

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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Rupiah Lagging Weaker Dollar Backdrop, Core CPI Backs BI On Hold View

IDR

USD/IDR is slightly higher in the first part of trade, nudging back above the 15250 level. The currency isn't enjoying any positive spill over from lower USD/IDR levels elsewhere in the region. It is also at odds with the better tone to regional equities, although the JCI is only a touch higher for the session so far. The 100-day EMA at 15268 remains on a cap on the topside. The simple 50-day MA is also close to this level.

  • Jan CPI data, which has just printed, is painting a picture that is consistent with the BI's view of no further rate hikes. Headline inflation was a touch firmer (5.47% y/y, versus 5.42% expected), but core came in at 3.09% y/y (3.24% forecast).
  • Bi Governor Warjiyo stated the central bank didn't see the need for further rate hikes. He stated it will focus on maintaining attractive yield differentials to support the currency. This will presumably be done by operation twist.
  • Yield differentials with the US are close to recent lows across the 2-10yr part of the curve. This may be weighing on IDR at the margin today.
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