ForexLive Asia-Pacific FX news wrap: China leaves prime rates on hold, marks down CNY

• Nomura is expecting an on hold decision from the Bank of England today, GBP won’t be moved
• Federal Reserve speakers Thursday include Kashkari, Barkin, Daly
• Hedge fund boot camp – Citadel internship pays US$19K a month
• Offshore yuan at its lowest since November last year as the PBOC relaxes its grip on CNY
• PBOC Loan Prime Rates (LPR) remain unchanged at today’s rate setting, as expected
• PBOC sets USD/ CNY central rate at 7.1192 (vs. estimate at 7.2653)
• Probability of a US stock market crash is below-average according to “froth forecasts”
• The PBOC USD/CNY fixing is coming up soon – looks like the Bank is lightening up
• New Zealand Q1 economy back to growth & beats expectations
• Japan survey of firms – very few believe wage growth quicker than inflation achievable
• New Zealand Q1 GDP +0.2% q/q (expected +0.1%)
• Ecuador has been hit with a nationwide blackout
• US equity index futures trade has reopened
• ICYMI – New Zealand Q2 consumer confidence falls to 82.2 from 93.2 in Q1
• China is expected to leave interest rates unchanged today – how long until they cut?
• Czech central bank governor Michl wants to buy 60 tons of gold, ” gradual purchases”
• Forexlive Americas FX news wrap: Bank of Canada said future easing would likely be gradual
• Trade ideas thread – Thursday, 20 June, insightful charts, technical analysis, ideas

Data
for Q1 GDP from New Zealand today indicated the country had emerged
from recession with 0.2% growth q/q and 0.3% y/y, both of which also
beat estimates. The details of the growth are weak.

NZD/USD
popped above 0.6145 on the data release but has since retraced that
small gain.

A survey of firms in Japan found only 7% believe PM Kishida’s pledge to have wages grow faster than inflation is achievable, see bullets above for more on this. USD/JPY has crept a little higher on the 158 big figure today, not much though.

From
China today we had further signs that the People’s Bank of China is
relaxing its grip on propping up the CNY, just a little. The USD/CNY
reference rate was set at the weakest (for the CNY) since November
last year. Also from the PBoC
were
the one- and five-year Loan Prime Rates (LPRs). They remained
unchanged from May:

• 3.45%
  for the one year
  • and
    unchanged
    for 10 months
• 3.95%
  for the five year
  • this
    was cut in February from 4.20%

Both
offshore and onshore yuan traded softer on the session.

Across
major FX ranges were very small.

We
await the Swiss National Bank and Bank of England monetary policy
decisions. There are wide expectations for a cut from the SNB, though
this is by no means locked in, and a hold from the Bank of England,
which does seem very likely.

US markets are open as normal for the balance of the week from today.

Offshore yuan:

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