CHINA PRESS: Yuan To Remain Relatively Strong Near-term
The yuan is expected to remain relatively strong in the short term, as the U.S. dollar faces depreciation pressure under the White Houses' domestic and foreign policy impacts on the U.S. economy, Securities Daily reported, citing Wang Qing, analyst with Golden Credit Rating. Both the onshore and offshore yuan rose to an intraday high of 7.15 on Thursday, the strongest since mid-November. China’s resilient economy helped support the yuan, with stable growth in industrial production and retail sales, as well as good capital market performance attracting inflows of cross-border funds, the newspaper said, citing analysts.
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AUSTRALIA DATA: April CPI A Touch Above Expectations, Limited FX/Bond Reaction
The April headline CPI was a touch above expectations at 2.4%y/y (2.3% was forecast). The trimmed mean rose 2.8%y/y (against a 2.7% prior outcome, there is no consensus estimate for this print). More details to follow.
- FX market reaction is limited so far, while futures are around 2bps richer. AUD/USD was last near 0.6450. We did get to 0.6454 post the data outcomes. AUD/NZD has been tracking former, but has been unable to sustain above 1.0850. We have the RBNZ in a little while.
MNI: AUSTRALIA MONTHLY APR CPI 0.2% MM, 2.3% YY
- MNI: AUSTRALIA MONTHLY APR CPI 0.2% MM, 2.3% YY
CHINA: Central Bank Injects CNY58.5bn via OMO
- The PBOC issued CNY215.5bn of 7-day reverse repo at 1.4% during this morning’s operations.
- Today’s maturities CNY157bn
- Net liquidity injected CNY58.5 bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.48%, from yesterday’s close of 1.61%.
- The China overnight interbank repo rate is at 1.44%, from the prior close of 1.45%.
- The China 7-day interbank repo rate is at 1.55%, from the prior close of 1.70%.
