- BNP on the sliding yuan - no hard line-in-the-sand
- AUD/USD to remain stuck in the middle of 0.63 - 0.65 range: China woes, dovish RBA
- China raids, fines US firm for foreign-related statistical investigations without approval
- Rumour that a Chinese nuclear submarine has had a serious accident near the Taiwan Strait
- China's banks may quicken mortgage rate cuts says Chinese media
- PBOC sets USD/ CNY mid-point today at 7.1992 (vs. estimate at 7.3097)
- JP Morgan says the Chinese yuan will keep on falling
- Morning JGB trade sees the yield on the 10-year rise to 0.655%
- JP Morgan's AI model Quant Sentiment on Federal Reserve monetary policy at multi-year low
- Australia data - ANZ Roy Morgan weekly consumer confidence 79.0 (prior 81.4)
- Former US President & leading Republican 2024 candidate Trump to turn himself in Thursday
- NZ analysts say RBNZ Interest rates will remain high for now, rate cuts start next year
- China cut only one Loan Prime Rate, and less than expected - here's why
- Brent - ANZ on signs of oil supply tightness easing
- UBS S&P500 forecast is as high as 4700, base case
- TD preview Federal Reserve Chair Powell's Jackson Hole speech - higher for longer
- Crypto exchange Coinbase has taken an equity stake in stablecoin company Circle
- Forexlive Americas FX news wrap 21 Aug. US 10 year yield rises to near 16 year highs.
- ICYMI - Japan's Ministry of Finance to raise its assumed long-term interest rate to 1.5%
- US equities post impressive gains as anticipation builds towards Nvidia earnings
- Trade ideas thread - Tuesday, 22 August 2023
The US 10-year Treasury yield hit its highest level since 2007 in Monday US time trade. Despite this the US session saw a lower US dollar and higher equity indexes. This set the stage for Asia trade today where regional stocks are mainly higher and the losses for the US dollar have continued, albeit in a small range only.
EUR, GBP and NZD are all a touch better bid against the dollar while AUD and CAD are laggards. USD/JPY has dropped away from its early high just shy of 146.40 to back circa 146.00. There has been no fresh news nor data out of Japan, although the benchmark 10 year JGB saw its yield track higher.
In local geopolitics North Korea informed Japan it intends to launch a satellite sometime before August 31. South Korea issued maritime safety warnings over the North Korea plan. Markets have been shrugging off North Korean belligerence.
From China news flow was light. The People’s Bank of China set the reference rate for the onshore yuan around 11 big figures from modelled estimates, the biggest gap ever. Remember, the aim of the People’s Bank of China is to slow the drop in the yuan, hence the efforts to prop it up in the face of an ever-widening 10-year yield differential with the US.
Asian equity markets:
Japan’s Nikkei 225 +0.7%
China’s Shanghai Composite +0.3%
Hong Kong’s Hang Seng +0.7%
South Korea’s KOSPI +0.6%
Australia’s S&P/ASX 200 +0.1%