Things turnaround, equity indices pared gains – Nikkei went into red. Why? Fact is risk is still off. One interesting comment by the Chinese head of NBS that the slowdown in property and stock markets had impact on the 2015 economy.
Into late morning, China stocks made a comeback. SHCOMP from flat to +1.62%.
At beginning AudJpy buying saw AudUsd printing 0.6893 but turn around in equity pushed the AudUsd to 0.6840’s. Offers were mentioned at 0.6930-35, while corporate bids at 0.6800-20.
The same goes for NzdUsd, the pair started off bid but ended lower on Jpy-cross selling
Canadian dollar tracked closely to price of oil futures and we think that will stay for now. There are bids below 1.45-handle; definitely market is short Cad. Times ran an article about OPEC saying they have defeated shale revolution. In that report, OPEC said “The analysis indicates that 2016 will be a supply-driven market. It will also be the year when the rebalancing process starts.” “The analysis indicates that 2016 will be a supply-driven market. It will also be the year when the rebalancing process starts.” If you recall, PM Justin Trudeau said lower Cad and low oil prices have damaged large parts of the economy.
I would be very careful.
Chinese 2015 GDP growth took the centre-stage. If you recall, Premier Li Keqiang at the opening of AIIB, said Chinese economy grew near 7% in 2015. There you have it.
USDCNY fixed at 6.5596, little change from yesterday’s 6.5590. Both Spot and forward points are stable.
Hkd took another beating – reaching high of 7.8091. Plenty of bets of UsdHkd blowout but I think this is lottery ticket bet. Remember, HKMA bought loads of Usd at 7.7500.