ForexLive Asia FX news wrap: Yuan a mover

yuan had a volatile session, losing ground in early trading on the
back of weekend remarks out of China expressing concern on the
currency’s strength, with an ex-PBOC official forecasting action to
stem its rapid appreciation. USD/CNH traded up to around 6.3730
before dropping away. The People’s Bank of China reference rate
setting was once again for a strong yuan, its strongest mid-rate
the middle of May in 2017. The mid-rate was not as strong as the
central survey estimate though, prompting the argument the PBOC wants
to slow the rate of appreciation. Given how yuan is surging I’m not
sure that is a very helpful take. USD/CNH has since dropped sharply, back to circa 1.3570 as I post. 

were a number of economic data points out during the session, notably
Japanese industrial production and retail sales, both a miss, along
with official China PMIs for May.

China data was a very slight disappointment for manufacturing PMI but
a welcome improvement for services, an indicator the domestic economy
is improving.

had a sharpish drop from session highs at the Tokyo fix (the final
for the month), coming off 20+ points soon after. AUD and NZD have
both gone up a little against the dollar, EUR and GBP also.

had a heavy weekend, down a little with some retrace. Bank of Japan
Governor Kuroda made comments on Bitcoin back on Thursday which were
referred to as a reason for the drop in BTC, which seems more of a
back-fitted narrative than anything else TBH.

the coronavirus news front, Vietnam have found a new variant that
manages to combine the awfulness of the UK and Indian variants into
one mutant.

reminder ICYMI, the UK and US are out for holidays today, Monday. 

Forex news for Asia trading onMonday31May 2021June seasonals: USD/CHF set up for softnessEUR/USD trade recommendation, long EURUSD/JPY is off 20 points from its session high RBA monetary policy meeting Tuesday 1 June 2021 - preview - no fireworksAustralia Private Sector Credit for April 0.2% m/m (expected 0.4%)PBOC sets USD/ CNY reference rate for today at 6.3682 (vs. Friday at 6.3858)Australia - Melbourne Institute monthly CPI inflation for May -0.2% m/m (prior 0.4%)NZ May Business confidence 1.8 (prior -2) and Activity 27.1 (prior +22.2)China official PMIs for May, manufacturing 51.0 (estimate was 51.1)Chinese traders bypass government control on crypto trading - OTC, P2P tradesKiyosaki hailing the fall in BTC price as Great news - targets US$27K to maybe buyJapan Retail sales for April +12% y/y Japan Industrial Production for April +2.5% m/m (expected +3.9%)Chinese think-tank says while US tariffs on China are likely to remain in place a middle ground might be foundHeads up for UK and US holidays today, Monday 31 May 2021WSJ on Biden's infrastructure discussions extending into June Goldman Sachs will double its yearly investment into Japan property The UK is abandoning COVID-19 vaccine passport plansCoronavirus - Vietnam has reportedly found a new COVID-19 variant, combines UK and Indian strainsTrade ideas thread - Monday 31 May 2021 Weekend - China regulator says will further crackdown on market manipulationNew Zealand says it is supporting Australia in trade dispute with ChinaYuan comments from an ex-PBOC official - Rapid appreciation is not sustainable, Bank will actSwiss National Bank Chair Jordan says the CHF remains highly valuedMonday morning open levels - indicative forex prices - 31 May 2021

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