The PBoC soothed the nerves by setting its....>

FOREX: The PBoC soothed the nerves by setting its central USD/CNY mid-point

firmer than expected as mainland China returned from holidays. The fixing

inspired the unwinding of earlier risk-off moves. USD/CNH descended onto the

CNH7.1 mark, but failed to break through the level. USD/CNY gapped higher at the

open and tested the CNY7.1 level to the topside, catching up with developments

from over the long weekend, but rejected the round figure and trimmed gains.

- Another mkt reopening was in South Korea. USD/KRW was heavy and attacked its

50-DMA, but failed to take it out. Improving sentiment kept the rate limited.

- Initial caution crept in as USD/JPY sank through Apr 29 low of Y106.36, a key

support level, with liquidity thinned by public holidays in Japan. USD/JPY has

climbed back above that level, but JPY continues to trade on a solid footing.

- NZD popped higher early on as New Zealand released above-forecast jobs data,

but the move was short-lived as the survey covered the pre-lockdown period.

- U.S. ADP employment, German factory orders & services/composite PMIs from

across the EZ, as well as comments from ECB's Muller and Villeroy, Fed's Barkin

and Bostic take focus today.