Data for Q1 GDP from New Zealand today indicated the country had emerged from recession with 0.2% growth q/q and 0.3% y/y, both of which also beat estimates. The details of the growth are weak.

NZD/USD popped above 0.6145 on the data release but has since retraced that small gain.

A survey of firms in Japan found only 7% believe PM Kishida's pledge to have wages grow faster than inflation is achievable, see bullets above for more on this. USD/JPY has crept a little higher on the 158 big figure today, not much though.

From China today we had further signs that the People’s Bank of China is relaxing its grip on propping up the CNY, just a little. The USD/CNY reference rate was set at the weakest (for the CNY) since November last year. Also from the PBoC were the one- and five-year Loan Prime Rates (LPRs). They remained unchanged from May:

  • 3.45% for the one year
    • and unchanged for 10 months
  • 3.95% for the five year
    • this was cut in February from 4.20%

Both offshore and onshore yuan traded softer on the session.

Across major FX ranges were very small.

We await the Swiss National Bank and Bank of England monetary policy decisions. There are wide expectations for a cut from the SNB, though this is by no means locked in, and a hold from the Bank of England, which does seem very likely.

US markets are open as normal for the balance of the week from today.

Offshore yuan:

usdcnh wrap chart 20 June 2024 2