CNH: CNY Fixing: Back Close To Neutral
May-05 01:20
The USD/CNY fix printed at 6.9114, versus a Bloomberg consensus of 6.9121.
- Today's outcome is a -7pip surprise in USD/CNY terms. This compares with yesterday's +28pip outcome.
- Today's outcome is unlikely to represent a shift in the fixing bias, as yesterday's outcome was the first fixing post the May day holiday period and we can often see deviations post such breaks.
- USD/CNH is trading with an offered tone this morning, last just under 6.9100, after opening around 6.9150. The USD is under broader pressure against the majors, with firmer US equity futures driving better risk appetite.
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STIR: RBA Dated OIS Softer, Awaits Gov. Lowe’s Address
Apr-05 01:19
Yesterday's RBA meeting didn't come as a surprise to the market, which had attached an 81% chance of a no-change outcome. However, the board's less hawkish guidance did cause a reaction as the RBA stated that "some further tightening of policy may be needed".
- RBA Governor Lowe is set to give an address at The National Press Club in Sydney today (at 0330 BST), which the market is hoping will offer deeper insights into the bank's perspective on the economy and the outlook for monetary policy.
- At present, RBA-dated OIS pricing is flat to 6bp softer across meetings. There's a 21% chance of a 25bp hike priced for the May meeting.
- With the RBA board signalling their belief that inflation has peaked, the market's attention is now firmly focused on the release of Q1 CPI on April 26, particularly as year-end easing expectations stand at 29bp.
Figure 1: RBA Dated OIS: Today Vs. Pre-RBA
Source: MNI – Market News / Bloomberg
BOJ: Fixed Rate Purchase Offer
Apr-05 01:12
The BoJ offers to buy an unlimited amount of 5- to 10-Year JGBs at a fixed rate of 0.50%.
BOJ: Rinban Purchase Offers
Apr-05 01:12
The BoJ offers to buy a total of Y1.175tn of JGBs from the market:
- Y425bn worth of JGBs with 1-3 Years until maturity
- Y500bn worth of JGBs with 3-5 Years until maturity
- Y250bn worth of JGBs with 10-25 Years until maturity
