MNI China Daily Summary: Wednesday, June 19

MNI BRIEF: Rate Changes Affect Eurozone More Than US Firms-ECB

MNI BRIEF: BOJ May Real Export Index Drops 1.4% M/M

MNI BRIEF: PBOC, MOF To Promote Treasury Trades Progressively

MNI: PBOC Net Injects CNY276 Bln Via OMO Weds; Rates Unchanged

CHINA PBOC CONDUCTS CNY278 BILLION VIA 7-DAY REVERSE REPOS WEDS

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

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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USD/CNH Biased Lower Despite Weaker Than Expected PBoC Fix

CHINA YUAN

Spot USD/CNH has been biased lower amid broader greenback weakness, despite a slightly weaker than expected PBoC fix and the announcement that the PBoC will auction CNH10bn worth of 6-Month Bills in Hong Kong next week. The rate sits -31 pips at CNH6.7508 as we type.

  • The Global Times has circulated reports on tensions with international partners including the U.S., Australia and India, amid no signs of any move towards rapprochement on any of these fronts, but Chinese ambassador to the U.S. expressed hope that the two nations will be able to cooperate on global challenges.
  • The recent price dynamics resulted in a bearish 100-/200-DMA crossover. Downside focus falls on Sep 16 low of CNH6.7424, the worst level sice May 2019. Below there opens May 1, 2019 low of CNH6.7179. Meanwhile, a jump above CNH6.7826, which capped gains yesterday, would allow bulls to target Sep 9 high of CNH6.8610.
  • The PBoC will announce its monthly LPR fixings on Monday. Then, China's final BoP current account balance is due Friday.
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