CNH: USD/CNY Fixing Stead, Error Term Narrows

• CHINA PBOC CONDUCTS CNY93.5 BLN VIA 7-DAY REVERSE REPO MON

The focus of the week will likely be RBA Governor Bullock’s speech on Thursday April 10 at 2000 AEST. She remained very neutral at the April decision’s press conference last week when asked about a rate cut for the May 20 meeting but US tariffs on imports and the subsequent market rout have happened since then and any questions are likely to centre on the RBA’s thinking following those events.

• In a data light week, surveys are the highlights. Westpac’s April consumer confidence survey is published on Tuesday and may weaken driven by tariff concerns and the drop in equity prices.
• The NAB March business survey is also on Tuesday and will be monitored for signs of concerns around the global outlook. The price and cost components remain important with the latter remaining elevated.
• Today ANZ-Indeed job ads for March are out. Data last week showed that vacancies fell sharply in Q1 but the ratio to unemployment remains above the historical average.
• The Melbourne Institute’s measure of consumer inflation expectations for April is on Thursday. It fell 1pp to 3.6% in March.

The USD/CNY fix printed at 7.1980, versus a BBG market consensus of 7.3122. 

• The USD/CNY fix was little higher versus Thursday’s fix  of 7.1889. The fixing error was -1142pips today
• USD/CNH is weaker by -0.2% at 7.3115 in morning’s trading.