PBOC

Only intervention from the Bank of Japan (BOJ) or a dramatic increase in Fed rate cut bets look to be standing between USD/JPY and a test of the multi-decade highs struck in late April, unless the People’s Bank of China (PBOC) moves aggressively to curb weakness.

The People’s Bank of China (PBOC) continues to loosen its grip on the Chinese yuan, sending USD/CNH highs not seen since late 2023 on Thursday. Given the influence the yuan has on emerging market and other Asian currencies, the technical break may have global ramifications if it sticks.

Gold is overbought on a short-term basis, but the long-term returns hint at more room to run higher from here...

China’s “National Team”, the nickname given to state-backed entities tasked with rescuing markets, are doubling their efforts, upping purchases of exchange-traded funds (ETFs) while restricting certain undesirable activities detrimental to stock prices. So far, indices such as the A50 are rallying.

China’s ‘National Team’ – a collection of state or quasi state-backed entities tasked by the government to smooth out financial market ructions when the prevailing price action is deemed desirable – looks like it may have been mobilised with China’s A50 ripping higher late Thursday and going on with the move today.

Chinese inflationary pressures remain weak, whether it be upstream or for consumers. But with expectations for further stimulus from the Chinese policymakers baked in the cake, does it have implications for China’s equity market or currency?

China’s August “data dump” has come in ahead of expectations, solidifying the view activity in the world’s second-largest economy is beginning to stabilise.

USD/CNH has broken out of the range it’s been in since July, signaling a potential period of consolidation, or even a reversal, from the prevailing bullish trend.

The Chinese yuan looks set for its largest gain against the US dollar since March, propelled higher a triple-whammy of factors.

Comprising huge financial and property firms, China's A50 may benefit from the rapid rollout of stimulus measures.

China cuts benchmark interest rates less than expected, adding to concerns about the trajectory for Chinese markets and the economy.