- More from the RBNZ: Estimate of nominal neural cash rate has increased 25bp
- NZD/USD a few points higher after the RBNZ statement says rates to stay high for some time
- Reserve Bank of New Zealand leave cash rate unchanged at 5.5%, as widely expected
- China's Zhongrong misses dozens of payments as fallout spreads
- China House Prices in July fell m/m and y/y
- PBOC sets USD/ CNY reference rate for today at 7.1986 (vs. estimate at 7.2878)
- Australia data - twelfth consecutive negative print for the Leading Index growth rate
- PBOC is expected to set the USD/CNY reference rate at 7.2878 – Reuters estimate
- DeDollarization? Nope, says BRICS guy. Bloc's plans for a common currency are "ridiculous"
- Wells Fargo see firming US inflation in the second half of 2023, FOMC to hike rates
- Japan data - Reuters Tankan shows Large Manufacturing and Non-manufacturing sentiment rise
- Danske see USD/JPY intervention likely - Japan's MoF to hold it circa 145-148
- JP Morgan slashed their China GDP forecast following the ugly data this week
- US-based analyst sees year end S&P 500 as high as 4850
- Private oil survey data shows much larger headline crude draw than was expected
- Trade ideas thread - Wednesday, 16 August 2023
- S&P 500 falls more than 1% for the second time this month
- Forexlive Americas FX news wrap: The US consumer continues to spend
The focus of the session was on the Reserve Bank of New Zealand monetary policy decision. The Bank left its cash rate unchanged for the second meeting in a row, as was almost unanimously expected.
While on central banks, the People’s Bank of China fixing of the USD/CNY reference rate showed the largest deviation from the expected since October last year. The rate was set at 7.1986 while the estimate from Reuters was 800+ points higher at 7.2878. While there was intervention to sell USD/yuan on Tuesday we have had none so far today. The PBOC appears to want to slow the pace of the yuan's decline, but doesn’t seem too bothered by the weakening yuan itself. USD/CNY and USD/CNH are being supported by widening yield differentials and a more broadly firmer USD.
NZD/USD popped a little after the RBNZ announcement. Elsewhere in major FX moves were subdued. There was continued volatility in the yuan.
Asian equity markets fell, following the lead from the weakness on Wall Street on Tuesday:
Japan’s Nikkei 225 -1%
China’s Shanghai Composite -0.6%
Hong Kong’s Hang Seng -1.4%
South Korea’s KOSPI -1.2%
Australia’s S&P/ASX 200 -1.4%
USD/CNH:
