- China is expected to reduce tax and fee burden of CNY 1.8tln for businesses
- Nomura eyeing GBP/USD at 1.30 and potentially higher, & Deutsche Bank recommend long GBP
- China March Caixin Services PMI 57.8 (expected 55, prior 55 )
- RBA says its seeing stress in domestic construction sector and commercial lending
- Australia February trade data: Exports -3% m/m (prior +1%) & Imports -9% m/m (prior +5%)
- PBOC sets USD/ CNY mid-point today at 6.8747 (vs. estimate at 6.8765)
- New Zealand data - ANZ's index of comodity prices +1.3% m/m in March (prior +1.3%)
- China stimulus - Local govt bond issuance +15.6% in Q1 2023, infrastructure projects.
- Mainland China retaliating against Taiwan - conducting "inspections" in the Taiwan Strait
- FX option expiries for Thursday 6 April at the 10am New York cut
- Former BOJ official says Yield Curve Control could be ended this month
- Reserve Bank of New Zealand recap - look set for a +25bp rate hike in May
- ANZ have 3 reasons to target USD/CAD at 1.29 by the end of this year
- China may ban export of technologies used to produce high-performance rare earth magnets
- UBS have raised their end-March (2024) gold price target to US$2200 (previously 2100)
- Goldman Sachs fined US$3mn for marking short sale orders as longs
- Forexlive Americas FX news wrap 5 Apr: Weaker US data starts to pile on
- The BOJ gets a new Governor this week. Here are 2 ways the Bank can make changes to YCC
- Tech and cyclicals lead US stocks lower as economic clouds gather
- Trade ideas thread - Thursday, 6 April 2023
Earlier this week we had a fall for the Caixin manufacturing PMI in China for March but the services PMI out today for the month rose further from its solid 55 in February to 57.8. Reopening has fuelled strong services demand. The impact on major FX was subdued.
From Australia were trade data for February. While exports fell, the fall in imports was much more notable. The headlines will scream that Australia recorded an improved trade surplus on the month, and indeed it did, but the story is the slump in domestic demand. Both consumption and capital goods dropped on the month.
We had a few other, lower tier, data releases and barely any fresh news of note.
FX moves were characterised by a slightly stronger USD. EUR, GBP, AUD, NZD, CAD, CHF all down to varying extents against the dollar. USD/JPY dribbled lower early in the session but has retraced to be barely net changed as I post.
If you are taking time off over the four-day break across major markets for Easter have a great time! I’ll be back on Tuesday, catch you all then.
Asian equity markets:
Japan’s Nikkei 225 -1.08%
China’s Shanghai Composite 0.0%, more or less flat
Hong Kong’s Hang Seng 0.0%, ditto
South Korea’s KOSPI -0.67%
Australia’s S&P/ASX 200 -0.27%
