IDR: Rupiah Strong in Morning Trade
- The BBDXY extended its move lower again overnight, the price action was very revealing and points to a market that is very quick to reinstate USD shorts with conviction pretty high for a move lower. This move was also assisted by US yields moving down as the market interpreted some of Powell's comments to imply he was open to earlier rate cuts. BBDXY opens a little lower in early Asian trading, -0.10%.
- The rupiah has gained +.36% in morning trading to be at 16,295 with the gains pushing the 5-day returns positive and is almost +2% stronger over the last 3-months. It has been helped by better risk sentiment following an easing in Middle East tensions.
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CHINA PRESS: Authorities Pressure To Expand Consumption Remains
Authorities remain pressured to stabilise employment and expand consumption, according to Guan Tao, former senior official at the State Administration of Foreign Exchange. Rising consumer loan interest rates have dampened residents' demand for credit and tariff-related economic pressures have reduced their risk appetite and willingness to spend, Guan added. The property market has not established a solid foundation in April as household's weak demand and unwillingness to accept additional leverage led to year-on-year declines in down payments and personal mortgage loans, widening by 7.1 and 12.9 percentage points, respectively, Guan noted. (Source: Yicai)
CHINA PRESS: China Indonesia Sign MoU To Expand Local Currency Settlement
The People's Bank of China Governor Pan Gongsheng and Bank Indonesia Governor Perry Warjiyo have signed a memorandum of understanding to promote bilateral transaction settlement in local currencies, Xinhua news agency reported. The new agreement allows for local tender transactions through capital and financial accounts, expanding the scope of an MoU signed in 2020 covering the current account and direct investment, according to Xinhua.
CHINA PRESS: China To Promote Green, Low-carbon Manufacturing
China will accelerate innovation in renewable technology and find advanced solutions to deepen the green transformation of traditional industries, according to a State Council executive meeting, chaired by Premier Li Qiang. Authorities need to increase promoting clean energy and green products, while improving standards and policies to support enterprises to upgrade, the meeting said. (Source: Xinhua News Agency)
