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ForexLive Asia-Pacific FX news wrap: Fretting over China growth

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It
was a quiet session in Asia today due to the US holiday on Monday
sapping big investor interest. News and data flow was very light
indeed. US Secretary of State Blinken met with Chinese officials over
the weekend. He spent over 7 hours in talks with his counterpart,
China’s Foreign Minister Qin Gang. Reports on the meeting provided
not detail at all, as yet, with only a round of saccharine ‘work
together’ types of statements.

In
other events, Goldman
Sachs analysts
joined in to became
the latest bank to cut their forecasts for China’s economy, citing
limited options to boost stimulus. UBS,
Nomura, and Standard Chartered were amongst those that had already
done so. The more subdued outlook for Chinese economic growth was
cited by various commentators during the session as the reason for
the fall in oil prices, and also AUD, NZD and CAD. EUR and GBP hung
in a little better. USD/JPY has done very little at all on the day.

Asian
equity markets:

  • Japan’s Nikkei 225 0%

  • China’s Shanghai Composite -0.5%

  • Hong Kong’s Hang Seng -1%

  • South Korea’s KOSPI -0.6%

  • Australia’s S&P/ASX 200 +0.6%

The offshore yuan was a mover, giving back some of the gains it made late last week:

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