- PBOC injected 120 billion CNY in money market funds
- Australia’s new motor vehicle sales down by 1.3% in July
- RBA minutes: Current policy is supporting economic rebound
- RBA: USD could appreciate further against AUD if Fed hikes rates
- U.K. inflation reports lined up
Forex junkies are still paying close attention to the Chinese central bank’s moves lately, as these could have far-reaching effects on the global economy. For today, the PBOC decided to inject 120 billion CNY through reverse repo operations in order to shore up liquidity in the money market. That’s nearly thrice as much as its normal amount of liquidity injections since last year.
So far, it seems that the Aussie isn’t reacting to this announcement yet, as traders are probably holding out to see how this would affect China’s numbers. The Australian dollar turned its attention to the release of the RBA meeting minutes instead, although the transcript simply confirmed that the current accommodative policy and weak Aussie are supporting the economic rebound. RBA officials added that the U.S. dollar could appreciate further against the Aussie once the Fed hikes interest rates.
AUD/USD is down 11 pips (-0.15%) and AUD/JPY is down 13 pips (-0.14%), possibly due to the 1.3% fall in Australia’s new motor vehicle sales for July. NZD/USD is up 23 pips (+0.35%) and NZD/JPY is up by 30 pips, but that could change during the Global Dairy Trade auction in the early Asian trading session tomorrow.
For now, forex traders might be looking into GBP setups since the U.K. is gearing up to print its CPI readings for July. The headline figure is slated to show a flat reading while the core CPI might indicate a 0.8% year-over-year increase, with stronger than expected data likely to push the pound higher. Better be ready for additional volatility starting 8:30 am GMT!
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!