Article Highlights

  • PBOC injected funds through 14-day reverse repos
  • PBOC urged banks to spread out loan tenors
  • Fonterra upgraded milk forecasts by 50 cents
Partner Center Find a Broker

Commodity currencies were able to squeeze out some gains during the Asian session thanks to positive reports and an injection of funds from the Chinese central bank.

Major Events:

PBOC funds injection – The People’s Bank of China decided to dole out a fresh batch of funds to the economy through 14-day reverse repurchase operations, without specifying what exactly these funds are for. Still, some couldn’t help but speculate that this is aimed at stimulating lending and spending activity, especially since the central bank also urged banks to spread out their loan tenors and encourage longer-term lending.

Fonterra milk forecasts upgrade – Thanks to the recent gains in dairy prices over the past few auctions, Fonterra decided to upgrade their milk forecasts for this year and the next by 50 cents. This could mean higher payouts for farmers and stronger export revenues, which would then contribute positively to overall growth.

Major Market Movers:

AUD & NZD – The Aussie and Kiwi were rebounded from their previous losses, perhaps banking on stronger demand from China later on.

AUD/USD climbed from .7610 to .7634 (+0.35%), NZD/USD is up from .7308 to a high of .7334 (+0.35%), AUD/JPY rallied from 76.43 to 76.70 (+0.35%), and NZD/JPY is up from 73.36 to 73.55 (+0.26%). EUR/NZD dropped from 1.5422 to a low of 1.5398 (-0.16%) while EUR/AUD fell from 1.4800 to 1.4771 (-0.19%).

Watch Out For:

  • 8:00 am GMT: German Ifo business climate index (108.5 expected, 108.3 previous)
  • 10:00 am GMT: U.K. CBI realized sales (-5 expected, -14 previous)

See more:

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!