17 Comments

  1. And i wonder what the Aussie would think about this?? about time to let the AUD weaken??
    AUD’s been too strong for my liking…

    for me… ultimately want to see USD strengthen, i suppose someone’s got to shut bernanke up…

  2. hi Gerry…is this going to be positive or negative for the usd on monday?????

  3. HI Gerry how are you? what you think where eur/usd open lower or up what’s your opinion please …. i have some shorts(selling) in eur/usd..

  4. AUDUSD will come down for this news.. Is it right sir?

  5. I remember last time they cut we spiked higher about 50 pips (and then several hundred pips more a couple hours later with that dollar swap thing). Will we get something similar this time or will we focus on Greece, I wonder?

  6. This is a move that increases ability to risk, so risk on. when china was raising RR it was dollar bullish in the past.

  7. The normal reaction to a cut like this, if seen during a trading session, would be for AUD/USD to rally slightly. The theory is that easier monetary policy is supportive of the Chinese economy and therefore helps general risk sentiment. It’s normally not a big move though, as it would be if it were an actual interest rate cut.

  8. Bit early to say Amir. I’d be looking to see what developments/news come out regarding Greece between now and the open.

  9. I agree with you Gerry, though I find it amusing that the thinking isn’t “oh no, they have to explicitly come out and make policy easier – economy must be doing worse than what we priced in”, but the other way round.

  10. The cut was not a surprise as there has been a liquidity shortage in lieu of the upcoming china construction communication ipo. With 7day repo surging to 5pct the rrr cut was to help smaller firms with the semi liquidity crunch rather than a broad base monetary easing. There is still an inflation fear as well as fx outflows in china. My guess is that aud may rise a little but there will be selling pressure.

  11. Cheers hsbc :)

  12. hi Gerry, is there a website to show interbank fx opening price before the retail brokes start operating? Interested in audusd today.

  13. Hi Darren, I know Sean puts early prices up. To be honest not sure where he gets them. Best to ask him.

  14. Or maybe other readers can help advise on this matter

  15. Hi Gerry,Darren you guys can try http://www.xe.com, i use it on sunday nights prior to the asian opening……..

  16. Cheers Ricky

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