Morning Forex News (27, July, 2021)

  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

  Previous days:

  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

Be the first to comment

Leave a Reply

Your email address will not be published.