China

China’s fledgling economic recovery suffered another setback in April with activity indicators mostly disappointing, especially regarding the beleaguered property sector. The news weighed on the Chinese yuan and other Asian currencies, such as the Japanese yen and Australian dollar.

Japan’s Nikki 225 and Hong Kong’s Hang Seng have been like chalk and cheese coming out of the pandemic. As one surged, the other floundered. But the tide looks to be turning, and fast.

With the influence of the Chinese yuan stet to increase further, this primer looks at the PBOC's USD/CNY daily ‘fix’, an event every trader should become familiar with given its importance to currency markets.

Iron ore futures are in an increasingly ugly bear market, spiraling lower since the beginning of the year after defying bears for what seemed to be an eternity in 2023. With the price catching up to what fundamentals had been warning for months, traders are wondering how far the move can extend?

The bear market in Chinese equities may be coming a state-endorsed end with A50 futures breaking the downtrend dating back to early 2021 earlier this week. The 200-day moving average may be the next bearish indicator to give way, bolstering the view that the lows may have already been seen.

China’s state-endorsed equity market recovery continues to go from strength to strength, building upon a lengthy and growing list of measures being rolled out by policymakers designed to coerce traders into buying. Perhaps the broader bear market trend may be coming to an end?

A bearish reversal pattern has formed on USD/CNH which implies a move down to 7.10. And if the yuan continues to strengthen, it could see the yen follow and scupper USD/JPY attempt at breaking 152.

Hang Seng futures don’t look like they’re about to embark on a face-ripping rally, no matter how cheap valuations are and no matter how much government encouragement is doled out.

Chinese equities have had plenty thrown at them in 2023. Yet, despite the challenges, some mainland indices such as the FTSE A50 are holding up alright.

Having been driven by rate differentials for much of the past three years, AUD/JPY is evolving into an effective way to express a view towards China’s outlook that does not involve the US dollar.

A trade idea to play what what is traditionally strong period for mining stocks.

The combination of a key US inflation report and finely-balanced ECB interest decision should keep EUR/USD on trader’s radars. Although we also have plenty of data out from China which could sway sentiment for risk assets, including CPI/PPI, loan growth, investment, retail sales and employment.

Comprising huge financial and property firms, China's A50 may benefit from the rapid rollout of stimulus measures.

China's stamp duty cut on stock trades sows seed for a bounce given depressed valuations and investor sentiment.

Iron ore has been rallying hard but will stimulus speculation end in sorrow?

Not a lot has to change to spark a near-term Aussie dollar reversal.

The People's Bank of China delivers the strongest USD/CNY fix relative to expectations on record.