- AUD/USD taking a hit on the awful Chinese data
- China's jobless rate for 16 to 24 year olds has hit its highest ever recorded
- China July Industrial Production 3.8% y/y (vs. expected 4.6%)
- China July new house prices down 0.9% y/y (down 0.5% prior)
- Rate cuts from the PBOC: 1-Year MLF loans rate to 2.75% from 2.85%, repo rate cut also
- PBOC sells 400bn yuan 1 year MLF AT A LOWER RATE
- PBOC sets USD/ CNY reference rate for today at 6.7410 (vs. estimate at 6.7425)
- Japan to keep imported wheat price unchanged despite inflation, & also to curb fuel prices
- RBNZ rate hike coming on Wednesday - NZD impact & preview
- Fed's Waller will be speaking on Monday 15 August 2022
- Japan Q2 GDP 0.5% q/q (expected 0.7%)
- China medium term loans mature today - only a partial roll-over is expected
- MUFG has 2 Trades of the Week: long USD/CAD & short EUR/USD targeting
- New Zealand services PMI for July 51.2 (prior 55.4)
- RBNZ shadow Board recommends a 50bp cash rate hike this week
- Weekend - Moscow warns of end to Russia-U.S. relations if assets seized
- Forecasts for year-end: EUR/USD to 0.97 & USD/JPY to 140
- Trade ideas thread - Monday, 15 August 2022
- A delegation from the US including members of Congress has arrived in Taiwan for a visit
- Saudi Aramco expects the recovery in oil demand to continue for the rest of the decade
- Bank of England Governor Bailey 'open to review' of Bank of England's mandate
- Monday morning open levels - indicative forex prices - 15 August 2022
- The weekend forex technical report for the week of August 15, 2022
- Bitcoin technical analysis, bulls might be giving up soon
- ICYMI - BlackRock's new private trust offers US institutions direct exposure to bitcoin
- China’s low interest rates are failing to spur lending in the economy - 'liquidity trap'
- More cities in China sent into COVID lockdown as cases mount
- Newsquawk Week Ahead - 15th-19th August
- Forexlive Americas FX news wrap:USD moves higher as flows shift from other currencies
The People’s Bank of China cut the rate on its Medium-term Lending Facility (MLF) today. There was a 600bn MLF maturing. The Bank rolled over 400bn yuan into a fresh 1-year MLF loan. The reduced amount appears in response to the ‘liquidity trap’ unfolding in China where plentiful cash is sloshing about but demand for loans is diminishing:
The rate was dropped to 2.75% from 2.85% previously. The rate on the daily 7-day reverse repo open market operations was dropped also, to 2.0% from 2.1%.
A little after the news of the rate cuts we had July ‘activity’ data published. The data was poor, with a series of misses on estimates. For the property sector specifically the news was just awful (it has been for some time). ICYMI the sector has been imploding under a vast debt load.
Across major FX the USD appreciated on the session.
EUR, AUD, NZD, GBP, CAD are all lower against the dollar. USD/JPY has fallen away on the session but is up from its sub-133.00 lows earlier in the session.
Offshore yuan lost ground on the rate cut news:
