MNI China Daily Summary: Friday, March 29

MNI: PBOC Injects Net CNY148 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.0950 Fri; -4.70% Y/Y

CHINA PBOC INJECTS CNY150 BILLION VIA 7-DAY REVERSE REPOS FRI

CHINA SETS YUAN CENTRAL PARITY AT 7.0950 FRI VS 7.0948

MNI BRIEF: Size Of June Cut Still Undecided -BCB's Campos Neto

HICP Tracking at 2.4%Y/Y - One tenth below consensus

HICP 2 tenths softer than expected, but partly on clothing prices

MNI: ITALY MAR FLASH HICP +1.2% M/M, +1.3% Y/Y

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

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

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

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USD/ZAR Eyes CPI >5%, SARB Focused on Medium-Term Factors

SOUTH AFRICA
  • USD/ZAR trades mostly flat to lower around the open, tracking BBDXY price action. The cross closed yesterday's session marginally higher, stalling out at 14.40 resistance as Fed Chair Powell reassured markets that rates would not rise too rapidly – resulting in a softer dollar into the back end of yesterday's session.
  • Ramaphosa's Port Authority reforms did little to inspire ZAR optimism amid a shift in sentiment regarding the deteriorating covid situation – but represents yet another step in the right direction towards a reform-focused ANC.
  • Focus today will be on CPI, expected to print at 5.1-5.2% y/y vs 4.4% prior mostly due to base effects.
  • While this print goes above the 4.5% midpoint of the SARB's range, this has been largely factored into the bank's reaction function and is expected to dissipate below the midpoint and remain there into 2022.
  • The SARB has reiterated its focus on medium-term factors and committed to keeping policy accommodative to support the recovery.
  • A print above 5.2% may spark a moderately hawkish reaction depending on the magnitude of the surprise, while a downside print may support some buying pressure in SAGBs on wider real yields.
  • Intraday Sup1: 14.1536, Sup2: 14.0768, Res1: 14.2777, Res2: 14.3833
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Markets NewsHomepage
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Markets NewsHomepage

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