MNI China Daily Summary: Monday, July 22

MNI BRIEF: PBOC Lowers Ceiling of Its Interest Corridor

MNI: China CFETS Yuan Index Down 0.05% In Week of Jul 19

MNI: PBOC Sets Yuan Parity Higher At 7.1335 Mon; -1.18% Y/Y

MNI: PBOC Conducts CNY58.2 Bln Via OMO Mon; 7day Repo Rate Cut

MNI BRIEF: PBOC Cuts 7-Day Repo Rate By 10bp

CBRT Data Watch

NBH Data Watch

Pay concerns push back easing expectations; curve flattens

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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Westpac On AUD/NZD - Still Constructive

AUDNZD

"Divergence in policy stances between the RBA and RBNZ have driven sharp swings in the AU-

NZ 2-year swap spread since the pandemic mostly skewing in the Kiwi’s favour...The RBA’s newly hawkish stance should ensure the worst is over for AUD/NZD from this angle. Meanwhile, our estimate of AUD/NZD fair value has risen this year (now 1.12), as China’s switch to stoking growth has boosted prices of Australia’s industrial commodity exports relative to NZ’s. Australia is already running trade surpluses while NZ’s current account deficit expanded beyond -7% of GDP in 2022, leaving NZ$ more exposed to global sentiment. The RBNZ fallout could see AUD/NZD extend to

1.0880 support near term, but multi-week/month we still see scope for a run at 1.1200."

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