Dunno how much, if anything at all, impact this will have on financial markets Once DJT departs. Even the first impeachment was water off a duck’s back.
Further signs from this info in Xinhua.
Meanwhile, AUD/USD is at a key (short-term level) testing recent highs circa 1.7720-ish:
China’s Foreign Ministry said in a statement on Wednesday, they strongly oppose the US accusations over the human rights issues in the north-western region of Xinjiang.
The Ministry said they oppose the US’ interference in China’s internal affairs.
These comments come after US Secretary of State Mike Pompeo officially declared that China is committing genocide and crimes against humanity against Uyghur Muslims and ethnic and religious minority groups who live in the Xinjiang province.
Pompeo said: “This genocide is ongoing, and…we are witnessing the systematic attempt to destroy Uyghurs by the Chinese party-state.”
“Since at least March 2017, local authorities dramatically escalated their decades-long campaign of repression against Uyghur Muslims and members of other ethnic and religious minority groups, including ethnic Kazakhs and ethnic Kyrgyz,” he added.Full Article
The Securities Daily newspaper’s commentary says that the People’s Bank of China (PBOC) is likely to provide liquidity in accordance with the size and needs of different financial institutions and avoid any excessive injections, according to the latest tweet by financial news organization MNI’s Anthony Barton.
China is likely to continue implementing pandemic relief policy tools such as debt deferment and credit loans for micro and small businesses and maintain a prudent monetary policy this year, the commentary added.
The PBOC kept the one- and five-year loan prime rates unchanged at 3.85% and 4.65%, respectively, early Wednesday.
Gold is expected to see most of its gains in the first half of this year, Standard Chartered Precious Metals Analyst, Suki Cooper, said in her latest client note.
“We maintain a positive view on gold; expect prices to retest USD 2,000/oz threshold and reach new highs.”
“We believe the bulk of gold gains are likely to materialize in the first half of the year.”
“Investors will continue to allocate into gold, given the likelihood of a weakening USD, real yields remaining negative, accommodative monetary policy, further fiscal stimulus, and rising inflation expectations.”
“Gold is caught between conflicting macro drivers amid a weak physical market.”
“A key question in 2021 is just how ‘sticky’ the metal held across ETPs is and whether holdings have peaked. Flows initially turned positive in January, and ballooning government debt and concerns around inflation are likely to prompt both tactical and strategic investors to look for buying opportunities.”Full Article
China says it strongly opposes the US statements, says its interference in China’s internal affairs.
This might take some of the steam out of the ‘risk’ FX trade …. AUD looks a little vulnerable to any loss of the bid given the recent highs it is testing.
EUR seems to have some wind being taken out of its sails by the YCC story earlier:
Elsewhere, though … AUD, GBP, CAD all moving higher, gold is back near $1850.
USD/JPY has lost ground also, a touch lower under 103.80
The US 10-year breakeven inflation rate, which represents how the market foresees long-term price pressures, rose to 2.10% on Tuesday to hit the highest level since Oct. 22, 2018, according to St. Louis Federal Reserve.
The breakeven rate has risen by over 50 basis points in the past three months, with investors expecting generous fiscal spending under incoming US President Joe Biden.
The President-elect unveiled a stimulus package worth $1.9 trillion last week. Meanwhile, Treasury nominee Janet L. Yellen argued Tuesday that it’s “critically important to act now” to pass more economic relief while defending Biden’s $1.9 trillion stimulus plan.
Rising inflation expectations could bode well for scarce assets such as gold and lift treasury yields, putting a bid under the US dollar.Full Article
USD/JPY looks south, with the hourly chart showing a failed breakout.
The pair broke higher from a triangle pattern on Monday, confirming a resumption of the recovery rally from the Jan. 6 low of 102.59. However, that failed to inspire the bulls, and the pair fell back inside the triangle pattern on Tuesday.
The failed breakout, a powerful bearish signal, looks to be attracting selling pressure at press time. The pair is currently trading near 103.77, representing a 0.13% drop on the day and could drop to 103.52 (triangle low). The below-50 reading on the 14-hour Relative Strength Index favors the bearish case.
On the higher side, 104.08 is the level to beat for the bulls. A violation there would revive the bullish outlook and open the doors for 104.40 (Jan. 11 high).
USD/CNH fails to justify the People’s Bank of China’s (PBOC) status-quo while refreshing weekly low to 6.4728 during early Wednesday. The currency pair portrays a corrective pullback to 6.4765, down 0.05% intraday, by press time.
Despite the quote’s latest losses, USD/CNH sellers should remain cautious unless witnessing a downside break of an ascending trend line from January 05, at 6.4640 now. It’s worth mentioning that the 200-bar SMA offers immediate support near 6.4720.
In a case where USD/CNH bears dominate below the stated support line, the last Wednesday’s low near 6.4400 should return to the chart.
Meanwhile, a descending trend line from Monday, currently near 6.4870, will probe the short-term upside of the USD/CNH prices ahead of the key resistance line from November 24 near 6.5015.
Also acting as an upside barrier is the monthly top surrounding 6.5050, a break of which can recall USD/CNH buyers targeting December top near 6.5855.
Trend: Pullback expectedFull Article
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