MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

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 Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

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

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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Sour China Data Undermines Commodity-Tied Currencies

FOREX
  • The greenback continues to bounce off the post-CPI lows, with the USD Index close to 1.5% off last week's lows. A sour set of economic data from China has prompted a wave of risk-off across currency markets. The price action has favoured the USD, JPY and CHF, with AUD and NZD the biggest losers in G10.
  • Both industrial production and retail sales data from China fell below expectations for June, with retail sales now in negative territory on a YTD basis. In response, the Chinese central bank cut both the 7-day reverse repo and the 1-year MLF rate by 10bps apiece, looking to arrest the slowing economy.
  • In response, the CNH is sliding, putting USD/CNH north of 6.78 and within range of next resistance at the 6.7954 August high. A clean break above here would be the highest level for the pair since early May.
  • Commodity- and high-beta currencies are sliding alongside the weakness in Chinese economic data, putting AUD/USD below 0.7050 and within range of 0.7030 support (23.6% retracement for the Jul - Aug upleg). CAD is exhibiting similar price action, with USD/CAD now just shy of the 1.2888 50-dma.
  • US Empire manufacturing crosses later today, with the index expected to slow to 5.0 from 11.1 prior. Canadian manufacturing sales also crosses as well as the NAHB housing market index. There are no notable central bank speakers due.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities

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