ForexLive Asia-Pacific FX news wrap: China rate cut, as expected

• UBS raised its 2024 forecast for China’s full-year real GDP growth to 4.8% (from 4.6%)
• MUFG sees a growing case for the BoJ to raise rates again before year-end
• Japan election – LDP likely to remain in government with support of coalition partner
• Monday will bring Federal Reserve speakers including Logan, Kashkari, Schmidt, Daly
• New Zealand credit card spending -3.2% y/y in September (prior -3.1%)
• More from RBA’s Hauser – monetary policy is ready to respond in either direction
• PBOC sets USD/ CNY reference rate for today at 7.0982 (vs. estimate at 7.0990)
• RBA dep Gov Hauser says surprised employment growth has been so strong
• China cuts 1 and 5 year rates by 25bp each, as expected
• Data from South Korea shows exports falling y/y in the first 20 days of the month
• Gold hits another record high in early Asia trade, Monday, October 21, 2024
• Concern over oil market oversupply fears might be exaggerated
• US inflation forecasts from 13 banks – PCE
• About that forecast for $25 oil …
• Reserve Bank of Australia Deputy Governor Hauser speaks today
• ECB Lagarde ‘data dependence’ is a smokescreen, December rate cut ahead
• UBS like gold higher, point to history indicating up to a further 10% rise
• Will the Federal Reserve pause in November and (or) December – Citi with the heads up
• Trade ideas thread – Monday, 21 October, insightful charts, technical analysis, ideas
• ECB’s Villeroy says probably more rate cuts, data dependent – “agile pragmatism”
• Monday morning open levels – indicative forex prices – 21 October 2024
• Weekly Market Outlook (21-25 October)
• Crude oil futures forecast – weekly chart. Bears eyeing $67.75 next
• Heads up for a rate cut from China expected on Monday, October 21, 2024
• Newsquawk Week Ahead: Highlights include PBoC LPR, BoC, EZ & UK PMI

The
People’s
Bank of China set its
Loan
Prime Rates (LPR) today.
A
rate cut as expected

1
year to 3.10%

• from
  3.35%

5
year to 3.6%

• from
  3.85%

Reserve
Bank of Australia Deputy Governor Hauser spoke. Hauser’s comments
once again pointed to an RBA that is not indicating a rate cut is
imminent.

Over
the weekend we had comments from Bank of France Governor and European
Central Bank Governing Council policymaker François Villeroy de
Galhau. Villeroy said he think inflation will return to ECB target
around the beginning of 2025. He says there will probably be further
rate cuts, data dependent.

USD/JPY
dribbled a little lower on the session, carrying on losses from
Friday. Major FX otherwise was relatively quiet, with small ranges
only.

Chinese
stockmarkets traded in a choppy fashion.

Gold
hit a record high price.

This article was written by Eamonn Sheridan at www.forexlive.com.