- Watching PBoC set yuan mid-point fix today, expected at 7.0205.
- China’s July trade report that is expected to show a pullback in the surplus.
The People’s Bank of China are expected to set yuan mid-point at 7.0205 against the dollar according to an RTRS estimate.
As well as this risk for today, we have China’s July trade report that is expected to show a pullback in the surplus from June’s hefty $51bn, to around $43bn. “Exports are seen down about -1%yr in US$ terms, imports -9%yr but as always there is plenty of scope for surprise in this volatile survey,” analysts at Westpac explained.
A combination of these could be negative for the Aussie and risk in general.
AUD/USD and NZD/USD action
“AUD/USD retraced most of yesterday’s RBNZ-led plunge, rising from 0.6677 (the lowest level since March 2009) to 0.6760 (and 0.6780 pre-RBNZ). Underperformer NZD rose from 0.6378 (lowest since Jan 2016) to 0.6445, still well below the 0.6550 level trading just prior to the RBNZ’s surprising 50bp cut yesterday. AUD/NZD preserved yesterday’s gains, up about 1.3% to 1.0490,” analysts at Westpac noted.
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