Ranges across major FX were subdued. The summary of the session is that the US dollar lost a little ground. It had gained on Monday in response to the news out of China of escalating COVID cases and restrictions. Cases in China continue to mount but as I update there are no further escalations of lockdowns of particular note. This may change.

Data today included the New Zealand trade numbers for October. The trade deficit ballooned to its highest ever following a surge in imports of consumer goods and cars. NZD/USD gained with the broad softness in the USD already noted above.

From China we had the country’s overnight repo rate falling to its lowest since January of 2021, circa 0.86%. Also, China will further prop up the property sector with another 200bn yuan in loans earmarked to help complete some projects.

In regional equities:

  • Japan’s Nikkei 225 +0.74%, Topix +1.19%
  • Australia's S&P/ASX 200 +0.61%
  • Hong Kong’s Hang Seng -1.33%
  • Shanghai Composite -0.2%, Shenzhen Component -0.84%

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ADDED - this came out after the wrap published, adding it in because it relevant to Chinese equities, they jumped on it:

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In crypto, Genesis has been in the news and was again today, with warning of bankruptcy unless it can raise funds. The firm says bankruptcy is not imminent. Stay tuned. BTC/USD dropped as low as around US$15,600 (just under) and is up a couple of hundred bucks since.

The agenda ahead includes the OECD publishing its latest Economic Outlook, at 1000 GMT.

BTC update:

btcusd wrap 22 November 2022