China stockmarkets opened very weak today, half-way down to a circuit breaker in fact, and then bounced back
The movements have had an impact in the currency space so I thought I'd do a sneak preview of the wrap to assess where we are at already
There will be a full Asia wrap a little later, at the regular scheduled time
China stocks weak to start but have bounced:
The yen has lost ground as China stocks stabilized, the optimism flowing through to other risk 'assets' (is a currency an asset?) and diminishing the attractiveness of the yen. Some chatter around the place, too, of (these are whispers) Chinese buying of USD/JPY
AUD has been a beneficiary of the better tone today also:
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If there is any doubt ... so far this year (yeah, so early in the year so this will change as time ticks by) China stocks are big driver (No, that's right not the only one). For today, the actions of the Chinese authorities (huge cash injection to ease liquidity, yuan intervention (3 traders confirm yuan bought on behalf of the PBOC), and likely direct intervention to buy stocks) is having the desired effect.
