The large information from Asia is that China moved to chop its 5-year LPR by 25 bps here. It is the most important minimize on document however is it too little, too late? The thought right here is to try to stimulate credit score demand however I worry that the harm has already been finished over the past 12 months or so.
The Chinese language yuan stays underneath strain however the PBOC is protecting a agency lid on USD/CNY nonetheless. The pair continues to maintain just under 7.20 with a tough line drawn at that stage presently:
USD/CNY day by day chart
The foremost currencies bloc continues to point out gentle modifications since yesterday as we recover from the lengthy weekend hangover. USD/JPY is up barely by 0.2% to 150.40 however stays throughout the realms seen final week. Apart from that, the modifications are minimal throughout the board as slim ranges proceed to carry for now.
With US markets set to return, eyes can be on Wall Avenue to supply some steerage on the flows this week. In any other case, the technicals will proceed to be a key level of focus.
For greenback pairs, the commodity currencies are seeing upside extra restricted for the time being due to that:
AUD/USD day by day chart
The aussie is being hindered by the 100-day shifting common (purple line) to date this month, because it trades in and across the 0.6500 mark.
NZD/USD day by day chart
In the meantime, NZD/USD is discovering itself extra rangebound for the time being in between 0.6050 to 0.6150 largely.
