Australian Consumer Sentiment Jumps 6% in August as Rate Outlook Improves 
Gold Prices Rise as Weak US Retail Sales Cut Fed Rate Hike Bets 
Oil Prices Rise as U.S.-Iran Tensions Grip Strait of Hormuz 
Foreign U.S. Treasury Holdings Fall as Japan, UK and China Cut Positions 
Canada Faces 50% U.S. Tariffs as Trade Tensions Threaten USMCA Talks 
S&P 500 Retreats From Record High as AI Stocks Slide, Retail Sales Disappoint 
European Stocks Slide as Iran War Escalation Sends Oil Higher 
Oil Prices Rise as Iran-U.S. Tensions Threaten Strait of Hormuz Supply 
Japan Economy Grows 1.1% in Q2 as Consumer Spending Stalls 
UK Wage Growth Holds at 3.5% as Unemployment Rises 
US Dollar Hovers Near Multi-Month Lows as Fed Rate Hike Bets Ease 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Asian Stocks Steady as Iran War Keeps Oil Prices and Inflation Risks Elevated 
Add as a preferred source on Google
The Chinese yuan is expected to weaken mildly against the greenback, touching almost a level of 7.10 by the end of this year.
Despite various administrative measures to reduce capital outflow pressures, the tendency remains towards more outflows which are not being matched by inflows at this stage. The authorities have been trying to maintain a stable RMB Index but this is resulting in falling FX reserves.
The PBoC has raised money market rates twice this year by a total of 20 basis points which we see as a precautionary move to stabilize the exchange rate.
"We expect the authorities to eventually allow the currency to adjust in order to prevent further erosion of their FX reserves. However, the depreciation path will be gradual," ANZ Research commented in its recent research report.
