ForexLive Asia FX news wrap: A bit of unexpected CNY strength

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Forex news for Asia trading Tuesday 11 June 2019

There has been some pressure increasing on China for allowing the yuan to slide, and today the PBOC set the reference rate about 150 points stronger than had been expected. Expectations were for a mid-rate circa 6.9080 but we got the setting at 6.8930. The benchmark ‘risk barometer” AUD/JPY popped higher on the rate, with AUD/USD up around 15 points and USD/JPY higher also. Since the rate set USD/JPY has maintained its gains, from lows circa 108.35 it hit highs above 108.60.

AUD/USD did not hold on though. It was briefly supported by headline business confidence up 7 points (May NAB Business Survey data) but the survey details were weak. AUD/USD headed back towards earlier lows, gained back a few points on some stimulus news from China (gasoline price cut to be announced Wednesday) and is currently more or less mid range for the session.

NZD/USD is sitting on its lows for the day.

EUR/USD, GBP/USD and USD/CAD are little changed. USD/CHF is a few tics to the better.

USD/CNH 5 minute candles – after the unexpected mid rate CNY strength:

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