ForexLive Asia FX news wrap: Another China (PBOC) rate cut

The People’s Bank of China cut its rate on the 14-day reverse repo by 10 bps today, from 2.35% to 2.25% Last week the 7-day RR rate was cut by 10bps (and other rates also) so the cut today to the 14-dayer was not a surprise (it was the first 14-day RR since the cut to the 7-day). Further, the PBOC set the mid-rate for the onshore yuan to its strongest since the middle of May in 2018.



While in China, Hong Kong confirmed its most daily new coronavirus cases in 18 months (to 140) despite its restrictions.



Over the weekend tensions in Ukraine continued to mount. The US State Department ordered families of diplomats at its Kiev embassy to depart and issued a warning not to travel to the country.



Across FX USD/JPY was a notable gainer with a move just above 113.90 (and is not far from there as I post). USD/CHF also headed up, tracking to 0.9140 and just over.

Elsewhere there was a little movement only. While GBP has added a few points against the dollar EUR has dribbled a few tics lower. AUD and NZD are barely changed, up just a little, as is CAD (all against the USD). Gold is up small also.

Bitcoin dropped under $35K over the weekend but managed a bit of a bounce towards $36.5K in Asia Monday.

Daily USD/offshore yuan chart – CNH still gaining:

cnh wrap chart 24 January 2022

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