- China/PBOC chatter - options ahead for further support to the economy
- Australian wages data is due Wednesday, 17 August 2022 - preview
- Australia has released a monthly CPI indicator. Its not pretty.
- RBA minutes: Rate hikes ahead not on a pre-set path
- PBOC sets USD/ CNY central rate at 6.7730 (vs. estimate at 6.7763)
- AUD lower on expectations of a weak CNY mid-rate
- EUR/USD losses expected to extend below parity - forecast to 0.95
- The People's Bank of China is expected to set the USD/CNY reference rate at 6.7763 today
- Standard Chartered slash their China GDP forecasts, & expect another 10bp cut to the MLF
- Australia weekly consumer confidence rose 4.9%
- China state financial media - PBOC indicates more policy stimulus needed
- Eyes on the yuan rate today as "PBoC continues with piecemeal monetary easing"
- Bank of America USD/JPY outlook - maintains a bullish bias over the medium-term
- Australia - consumers still spending quite strongly, but rate of spending growth falling
- Arab media report (citing Iranian source) Iran is 'not far' from reaching nuke agreement
- Oil - Awaiting developments on Iran nuclear deal talks, rumours swirling
- Trade ideas thread - Tuesday, 16 August 2022
- Forexlive Americas FX news wrap: The bulls shrug off a rough start
- Major stock indices close higher on the day. Dow closes above 200 day MA
Late in the North American afternoon markets awaited any news out of Iran on its views on an agreement on renewing the nuclear deal. All we got were unnamed sources saying progress had been made (I’m paraphrasing). We got nothing concrete to indicate a deal would (or would not) be reached. The latest is that Iran has returned the proposal to the EU negotiators; with headlines cautiously optimistic. We are accustomed to this saga dragging on and on though, and so it will. Oil dropped a little in price but did not trouble its Monday’s lows and has since retraced to be little changed on the session so far.
The People’s Bank of China cut the CNY (ie a higher USD/CNY) in its daily reference rate setting. As was expected. There was nothing of substance out of China regarding further stimulus moves to come. ICYMI the Bank sets its one- and five-year loan prime rates (LPR) on Monday coming (the 22nd). A cut is expected given the cut to the MLF on Monday (see Monday’s Asia Wrap for more on this if needed).
The Reserve Bank of Australia published its August meeting minutes, reiterating the interest rate path ahead is not preset.
Turning to forex rates. USD/JPY dipped briefly under 133.00./ As I post its traded back towards 133.50 and is now circa 133.35 and a touch stronger on the session.
AUD/USD dipped to 0.7000 on conjecture the PBOC was to cut the CNY rate but once the reference rate setting was out of the way the Australian dollar recovered its small losses and has gained on the day. NZD/USD traded a similar pattern, as did cable and EUR/USD but in smaller ranges.
Oil:
