PBOC sets USD/ CNY central rate at 6.4734 (vs. yesterday at 6.4763)
The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
USD/CNY is permitted to trade plus or minus 2% from this daily reference rate.
CNH is the offshore yuan. USD/CNH has no restrictions on its trading range.
The previous close was 6.4825
Reuters estimate was 6.4748 (A rate that's significantly stronger or weaker than expected is typically considered a signal from the PBOC).
PBOC injects 10bn yuan via 7-day reverse repos
10bn RRs mature today
thus a net natural day for open market operations
Australia's largest population state (Sydney the capital) reports another record high new cases
New South Wales is Australia's largest population state with Australia's largest city, Sydney
The new cases reported today has jumped after the weekend dip we have seen time and again through this pandemic.
172 cases of community transmission in the preceding 24 hours (highest for this outbreak)
62 of those were infectious in the community
145 new cases for Sunday
For Saturday was 141
For Friday was 168
So yeah, weekend dip is familiar.
MUFG on the AUD / NZD divergence
A summary of comments from MUFG on their outlook for the Australian and New Zealand dollars.
zero-tolerance COVID policy could weigh on economic growth
MUFG cite plunging retail sales in June (recall these were a huge 1.8% drop)
and a similar huge drop in flash PMIs (Services 44.2, to a 14-month low)
monetary policy will be tightened soon
no fresh outbreaks of COVID in New Zealand will reinforce the RBNZ's determination to hike
MUFG target 1.0250 for AUD/NZD
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