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AUD/USD to remain stuck in the middle of 0.63 – 0.65 range: China woes, dovish RBA
This snippet via Mizuho on the Australian dollar. In a (very) brief summary of the piece:China Woes: The sheer magnitude of balance sheet and cash-flow shocks mean stimulus, including rate cuts are mere signals not solutions.Especially as further property sector and...
China raids, fines US firm for foreign-related statistical investigations without approval
China imposed roughly US$1.5 mn in financial penalties on the Beijing arm of Mintz Group for allegedly conducting unapproved statistical work.The info comes from a Wall Street Journal (gated) report, in brief:Beijing Municipal Bureau of Statistics said Mintz’s Beijing...
Rumour that a Chinese nuclear submarine has had a serious accident near the Taiwan Strait
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
China’s banks may quicken mortgage rate cuts says Chinese media
China Securities Daily with the opinion piece saying banks may hurry along cuts to existing mortgage rates. Seems a little far-fetched to expect too much on this. Yesterday the People's Bank of China left the 5 year LPR unchanged. This is the rate that mortgage rates...
PBOC sets USD/ CNY mid-point today at 7.1992 (vs. estimate at 7.3097)
People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading...
JP Morgan says the Chinese yuan will keep on falling
Analysts at JP Morgan remain bearish on the RMB:“The fundamental case for additional yuan weakness remains very much intact.” “We see the dollar-yuan uptrend as durable, but recent events are a reminder that authorities will periodically try to disrupt one way...
Morning JGB trade sees the yield on the 10-year rise to 0.655%
The soft tweak to monetary policy at its previous meeting saw the bank allow the 10 year to rise above its previous 0.5% cap. The new line in the sand is 1%. We are not close to that. Yet. USD/JPY is not far from its recent high, no jawboning from Japan as yet either....
PBOC is expected to set the USD/CNY reference rate at 7.3097 – Reuters estimate
People's Bank of China USD/CNY reference rate is due around 0115 GMT.The People's Bank of China (PBOC), China's central bank , is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate...
JP Morgan’s AI model Quant Sentiment on Federal Reserve monetary policy at multi-year low
In summary from J.P. Morgan's proprietary AI quant model latest:Corporate sentiment is weak overall given financial conditions, aggregate sentiment QSI score for the S&P 500 at the 32.7th percentile The QSI on Federal Reserve monetary policy is at a multi-year low...
Australia data – ANZ Roy Morgan weekly consumer confidence 79.0 (prior 81.4)
Australian Weekly ANZ Roy Morgan Consumer Confidence survey comes in at a still very weak level, and down from last week. ANZ comment: Confidence fell 2.4pts, perhaps on AUD weakness. Household inflation expectations jumped to 5.5% from 5.2% the week before.MoneyMaker...
Former US President & leading Republican 2024 candidate Trump to turn himself in Thursday
The two-horse race for the 2024 US Presidential election is Biden vs. Trump.Former President Trump is well in front of other Republican candidates and it seems their best chance is if he ends up convicted and in jail. CNN reports Trump plans to turn himself in at...
NZ analysts say RBNZ Interest rates will remain high for now, rate cuts start next year
Via a note from analysts at KiwiBank, their outlook for the Reserve Bank of New Zealand.In (very) brief summary from the note:The RBNZ ... cash rate was left unchanged at 5.5%.The OCR track however was more hawkish than we had hoped. We were surprised to see the...
China cut only one Loan Prime Rate, and less than expected – here’s why
This snippet from UBS on yesterday's disappointment from the People's Bank of China:China cut its one year loan prime rate, but less than markets had anticipated. For those bewildered by the plethora of policy tweaks in China, it is best to look at the bigger picture....
Brent – ANZ on signs of oil supply tightness easing
A handy snapshot summary from ANZ on oil supply:signs of supply tightness easingIraq’s oil minister, Hayyan Abdul Ghani, is reported to be planning the resumption of oil exports through the Ceyhan terminal. Output has been curtailed by a dispute over payments between...
UBS S&P500 forecast is as high as 4700, base case
A snippet projection from UBS on the benchmark S&P500 index.Analysts at the bank's base case forecast for the index is to 4,500 in December 2023 and then 4,700 in June 2024. Citing:second-quarter reporting season likely marked the trough in year-over-year earnings...
TD preview Federal Reserve Chair Powell’s Jackson Hole speech – higher for longer
Federal Open Market Committee (FOMC) Chair Powell is speaking this week at the Kansas Fed's Jackson Hole symposium.Previews posted:Previewing the week ahead in financial markets. TL;DR version is NVDA earnings vs. PowellGoldman Sachs is not expecting a strong signal...
Crypto exchange Coinbase has taken an equity stake in stablecoin company Circle
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
Forexlive Americas FX news wrap 21 Aug. US 10 year yield rises to near 16 year highs.
The start to the trading week was void of any economic news (or central bank comments for that matter) in the US session. The Jackson Hole Summit later this week, will provide the fireworks with Chair Powell's speech scheduled for Friday at 10:05 AM ET, highlighting...
ICYMI – Japan’s Ministry of Finance to raise its assumed long-term interest rate to 1.5%
The news hit during the Japanese afternoon on Monday, Justin had it posted:The current assumed rate is 1.1% this fiscal year, the MoF is to boost it to 1.5%. So, there is movement in Japan, in mindset if not on BoJ policy just yet. Japanese media, Kyodo, had the...