The China protests over the weekend weighed on the market mood yesterday but today, things are turning 180° as there is talk about re-opening and a possible announcement to end the zero-Covid policy. Some posts from earlier:
- China State Council press conference at 0700 GMT on COVID - rumours on ending COVID zero
- Here's an interesting item that suggests China may soon dump the COVID zero policy
This is getting domestic stocks riled up with the Shanghai Composite up a little over 2% and the Hang Seng up by over 4% on the day.
In turn, the dollar is weighed down across the board after putting up an impressive showing in US trading yesterday. I want to say that month-end flows are not making it any easier to read into the push and pull to start the new week.
EUR/USD traded back down under its 200-day moving average yesterday after briefly clipping five-month highs and is now running up against the key technical level today at 1.0377.
Meanwhile, USD/JPY continues to stave off a close below daily support around 138.45 with further daily support at 137.65 also still holding for now.
Elsewhere, AUD/USD dipped back below its 100-day moving average yesterday but is now trading back up above that amid a strong rally alongside the yuan. The pair is up 0.8% to 0.6700, just above the key level at 0.6685 currently.
Revisiting a classic..
