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Markets are cautious early Monday morning ahead of a four central bank week. Lots of chatter over the weekend of de-dollarisation with Yuan based trade volumes rising significantly. It's true but re-creating a banking system to deal with it, or maybe a blockchain-based alternative hasn't actually been started yet. As far as we know.
China is ditching the dollar, fast [The Economist]
US, China end first day of talks in Spain on trade, TikTok deadline [Reuters]
Having pointed out RSI divergence on NASDAQ etc recently everyone wants to look at it on Bitcoin. Below is weekly but divergence not so clear. On the monthly too. Those BTC perma-bears will have to wait for more evidence.
China allowing the Yuan to strengthen is another new narrative. However looks like it's returning to long time peg. Certainly inflows have been massive recently and PBoC is probably enjoying not having to defend the currency for a change.
USD/CNH OFFSORE YUAN Monthly
The big drop in 30 year yield from 5% to 4.65% pretty much adds to a previously slightly easing perspective from the FED, to a 50bps cut this week. So look out below price-wise, if we only get 25bps or even 50bps with hawkish presser.
US 30 Year Government Bond Yield Daily
ASX hit new all time high recently but is now back to support. Currency has broken higher and rates are holding up. A further drop in USD could break the market lower.
ASX Daily