- Japan PM Kishida says he'll have an extra economic plan drafted by the end of October
- Fitch says that recent easing in China may not be enough to revive new home sales
- International Energy Agency head says in the middle of first global energy crisis
- Singapore to permanently mandate standby fuel reserves
- China's currency war on the US has been stepped up a notch - CNH to a record low
- PBOC sets USD/ CNY central rate at 7.1668 (vs. estimate at 7.1348)
- PBOC has relaxed cross-border funding
- Kuroda quoted as saying recent sharp, one-sided yen drop not desirable for the economy
- Japan finance minister Suzuki with his usual FX remarks- excess FX volatility unacceptable
- RBNZ Chief Economist says the Bank is hopeful that inflation has peaked
- Japan official once again warns against yen dropping - paying full attention to the impact
- Rare China optimist spotted: Allianz says China will lift its Covid-Zero policy soon
- AUD traders heads up - on Tuesday evening the Australian budget is announced
- China's new leadership group: pro-market pragmatists "gone"
- Goldman Sachs see 'green shoots' appearing for the S&P500
- EU warns that a price cap on gas for power needs UK, Swiss involvement
- ICYMI - US Treasury taking steps to strengthen the resilience of the Treasury debt market
- Australia consumer confidence weekly survey drops again, down 1.3% w/w
- ICYMI: BoE's Ramsden says the October PMI consistent with UK economy being in recession
- Goldman Sachs warn on China leadership - the risks that sent HK's Hang Seng into freefall
- KRW - South Korea inflation expectations till rising
- Forexlive Americas FX news wrap. Sunak becomes the youngest PM in modern history
- Goldman Sachs remains bullish USD/JPY - Japan's policy mix unsustainable - BOJ buying time
- Trade ideas thread - Tuesday, 25 October 2022
- Two day win streak for the major US indices
The People’s Bank of China set the onshore yuan reference rate a mammoth 400+ points lower (i.e. higher for USD/CNY) today, to the weakest for the onshore yuan since February of 2008. Offshore yuan responded by dropping to its lowest ever (i.e. highest on record for USD/CNH) around 7.3650.
In addition, the PBOC and the State Administration of Foreign Exchange (SAFE) relaxed a cross-border funding rule, aimed at encouraging capital inflow. The weakening yuan has been working to encourage capital outflow, a key concern of Chinese authorities.
Shares in mainland China and Hong Kong fell further in morning trade, though not close to epic drop on Monday:
ADDED - since posting, China's National Team has been in scooping up stocks and sending Chinese indexes higher.
Across major FX moves were subdued. We had comments again from Japan’s finance minister Suzuki, with little impact. AUD, NZD and others gave a little ground against the US dollar on the PBOC reference rate setting.