ForexLive Asia-Pacific FX news wrap: Chinese yuan gains – strong setting, mixed data |

USD/JPY
had more decent-sized swings again today, from around 141.80 it
traded to (briefly) above 142.40 before dropping all the way back to
where it began. We had lower-tier data from Japan today, not enough
to point a finger at to blame for the move(s). Yen is likely to keep
on moving in a volatile fashion ahead of the Bank of Japan meeting
next week, on the 18th
and 19th,
and, I suspect, beyond.

AUD,
NZD, CAD all traded a little higher against the USD. Eyes were on
China where it was a mixed bag today:

  • the
    People’s Bank of China set the CNY at its highest reference rate
    since early June;
  • the
    PBoC injected a whopping 1.45tln yuan at today’s Medium-term
    Lending Facility (MLF) rate setting and rollover; 650bn yuan matured
    which left a monthly injection of 800bn yuan, its biggest ever;
  • Chinese
    economic activity data for November indicated a beat for Industrial
    Production, a miss for Retail Sales, and property-related indicators that
    remained
    very
    weak indeed,
    with
    falling investment, sales and prices.

Offshore
yuan (CNH) has traded strongly during the day so far, helping support
China-related trades (such as AUD).

Offshore yuan higher, 5-minute candles:



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