- More on China looking to ease “three red lines” property – would boost property sector
- China could ease “three red lines” property rules – this would be a huge policy shift
- Federal Reserve speakers due on Friday, 6 January 2023 – Cook, Bostic, Barkin, George
- A Chinese transport official estimates Lunar New Year traffic will nearly double from 2022
- Deutsche Bank’s 5 key themes for the UK in 2023
- European Central Bank speakers coming up on Friday, 6 January 2023 – Centeno, Lane
- Tesla has further cut the prices on its Model 3 and Model Y EVs in China
- Another Bank of Japan unscheduled JGB buying operation today
- PBOC sets USD/ CNY reference rate for today at 6.8912 (vs. estimate at 6.8914)
- Saudi Arabia cut the price of crude for Asia in February to the lowest in more than a year
- PBOC is expected to set USD/CNY mid-point at 6.8914 – this is the Reuters estimate
- Japan December (final) Services PMI 51.1 (prior 50.3)
- Goldman Sachs preview of the US nonfarm payroll (NFP) report due Friday, 6 January 2023
- Japan wages data for November 2022: real wages fall their fastest y/y since May 2014
- China restrictions on imports of Australian commodities: gradual, unofficial easing ahead
- ICYMI – China may impose a cap on real estate commissions to boost property demand
- ICYMI – China has further loosened mortgage rates for cities with home price declines
- Forexlive Americas FX news wrap: On the eve of the US jobs report, ADP and claims strong
- Crypto lender Genesis is considering filing for bankruptcy
- ICYMI – ECB’s Villeroy says the Bank’s interest rates should reach a peak by this summer
- Trade ideas thread – Friday, 6 January 2023
The
market had settled in to wait for the US jobs data (December NFP due
later today) and major FX has traded in fairly confined ranges.
However, continued news out of China as the country makes efforts to
reopen and to get on top of its property crisis kept interest alive.
Overnight
news was of China’s central bank, along with China’s banking and
insurance regulator, extending a mechanism for lower mortgage rates
for first-time home buyers. This was first introduced in September
last year but was made more flexible. It will lower the cost of
buying a home and help better support housing demand and the property
sector.
Later
in the session news crossed of likely easing of the “three red
lines” property restrictions introduced in property boom times back
in August of 2020. Please see the two posts above for more on this.
The yuan gained, as did Chinese stocks again today. AUD and NZD caught
a small pop on the 3 red lines news also.
Japanese wages data showed the biggest drop in inflation adjusted pay in 8 years. USD/JPY rose on the session, not quite reaching back to 134.00.
US
politics continued mired in deadlock. Kevin McCarthy was blocked
for the 11th time in his bid to become US Speaker. The House
reconvenes at noon Friday for the 12th
round of voting, and most likely more than that. Otherwise, its a big
day coming up in the US with the December nonfarm payroll report
(previews above) along with a number of Federal Reserve speakers on
the docket (see bullets above).
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