China government says: Report that China is considering reducing or stopping purchases of US treasuries could be based on wrong information

via Reuters quoting a China government source

  • China has been diversifying its FX reserves investments
  • China's investments in u.s. treasuries is market-driven

You will recall the overnight action where the USD sold off on reports China was slowing its purchases of US treasuries:

Well, China denying this now.

If you are a noob to FX and markets in general this sort of flow of wrong information is not unusual. Info --> market moves --> new information --> new moves.

Some times the news and denial/correction comes out within seconds or minuts, sometimes hours (as in this example).

Stay nimble gang!

And we are getting a bid back in the USD: