- Yuan intervention - China's major state-owned banks seen selling USD/CNY
- European Commission expected to announce Chinese electric vehicle (EV) tariffs this week
- Onshore yuan (CNY) has dropped to its weakest since mid-November 2023
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- Australian May business confidence -3 (prior 1.0)
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- PBOC sets USD/ CNY reference rate for today at 7.1135 (vs. estimate at 7.2724)
- Bank of America says long oil is the best upside hedge into the US election
- Japan finance minister Suzuki crossing the news wires, doesn't mention the yen
- European Central Bank speakers on Tuesday include Holzmann, Villeroy and Lane
- Vietnam authorities expected to loosen gold import rules by July/August
- US CPI and FOMC due this week - UBS preview
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- UK election: JP Morgan forecasts positive if Labour wins: move beyond policy paralysis
- EUR traders - Commerzbank on the French election, Europe "appears gradually more fragile"
- Risk of the Fed remaining "on the sidelines for longer", and so USD "stronger for longer"
- UBS raises the question of Fed rate hikes after the super-strong jobs report (says 'No')
- Forexlive Americas FX news wrap 10 Jun: The USD is mixed the day after the US jobs report
- S&P and NASDAQ indices close at record levels. Dow pushes into positive territory at close
- Blackstone is planning to invest $9.6 billion in Japan by 2027
- Trade ideas thread - Tuesday, 11 June, insightful charts, technical analysis, ideas
The People's Bank of China set the onshore yuan reference rate at its weakest since January 19 today, which allowed USD/CNY to trade higher, to around 7.2551 and levels not seen since the middle of November last year. The weakness in the onshore yuan prompted major Chinese State Banks to sell USD/CNY to support the yuan. These banks often act on behalf of the People’s Bank of China to intervene in the market when instructed to do so.
Elsewhere major FX was relatively subdued. AUD/USD drifted back from highs above 0.6610 to around 0.6590. News dropped earlier in the session of an AUD1.2bn takeover offer made by Bain for an Australian retailer of automotive parts and accessories (Bapcor). You’d think that’d be bullish for the AUD but by the time news of such developments hits the headlines you can bet your farm that Bain (in this case) had well and truly bought enough AUD for whatever hedge it needed for their bid. Data from Australia today showed a slip for business conditions and confidence in May. The inflation details in the report showed it edging a little higher, which is not a comfort for the RBA.
USD/JPY ticked higher, tracking back to just over 157.30. There were no obvious fresh catalysts.
This is the offshore yuan (USD/CNH), responding to the yuan intervention (conducted in USD/CNY):
