MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: USD Ticks Lower, NZD Outperforms, Limited Spillover From Bitcoin Surge

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets

G10 currencies are up against the USD, albeit modestly. The USD BBDXY index is little changed though, just under 1280.5. 

  • Bitcoin has surged through $100k, last up over 5%, but this hasn't spilled over much elsewhere in terms of USD trends. The surge in Bitcoin follows Trump's pro-crypto pick to head up the SEC (see this BBG link).
  • NZD/USD is up around 0.30%, outperforming AUD. NZD/USD was last near 0.5865/70, close to session highs. Local onshore yields are ticking up, despite softer volume of building work data for Q3. We had a debt sale earlier for local bonds (NZ$500mn), which may be helping sentiment in the FX space at the margins. Offshore ownership of local bonds has been climbing in recent months (last 62%, Nov data due Dec 17).
  • The AUD/NZD cross is at fresh lows back to early Oct, last near 1.0960/65. The 200- day EMA and MA's are both near 1.0940 in terms of downside targets. AUD/USD is relatively steady at 0.6430/35, with better than expected household spending data not providing a positive impact.
  • USD/JPY saw highs of 150.78, but sits back at 150.35/40 now, around 0.15% stronger in yen terms. We heard from BoJ board member Nakamura, who had dovish remarks and cautioned around adjusting policy rates. Still, Nakamura is a known dove, so the remarks didn't have a lasting impact on yen sentiment.
  • In the cross asset space, US yields have ticked up, but only reversing a small part of Wednesday's fall. Fed remarks from Daly suggested no urgency to lower rates.
  • Looking ahead, the Fed’s Barkin speaks and US November Challenger job cuts, October trade and jobless claims print. Canadian November PMI, German October factory orders and euro area retail sales are also released. BoE’s Greene speaks.
291 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

G10 currencies are up against the USD, albeit modestly. The USD BBDXY index is little changed though, just under 1280.5. 

  • Bitcoin has surged through $100k, last up over 5%, but this hasn't spilled over much elsewhere in terms of USD trends. The surge in Bitcoin follows Trump's pro-crypto pick to head up the SEC (see this BBG link).
  • NZD/USD is up around 0.30%, outperforming AUD. NZD/USD was last near 0.5865/70, close to session highs. Local onshore yields are ticking up, despite softer volume of building work data for Q3. We had a debt sale earlier for local bonds (NZ$500mn), which may be helping sentiment in the FX space at the margins. Offshore ownership of local bonds has been climbing in recent months (last 62%, Nov data due Dec 17).
  • The AUD/NZD cross is at fresh lows back to early Oct, last near 1.0960/65. The 200- day EMA and MA's are both near 1.0940 in terms of downside targets. AUD/USD is relatively steady at 0.6430/35, with better than expected household spending data not providing a positive impact.
  • USD/JPY saw highs of 150.78, but sits back at 150.35/40 now, around 0.15% stronger in yen terms. We heard from BoJ board member Nakamura, who had dovish remarks and cautioned around adjusting policy rates. Still, Nakamura is a known dove, so the remarks didn't have a lasting impact on yen sentiment.
  • In the cross asset space, US yields have ticked up, but only reversing a small part of Wednesday's fall. Fed remarks from Daly suggested no urgency to lower rates.
  • Looking ahead, the Fed’s Barkin speaks and US November Challenger job cuts, October trade and jobless claims print. Canadian November PMI, German October factory orders and euro area retail sales are also released. BoE’s Greene speaks.