, 12 tweets, 6 min read Read on Twitter
China fix 6.9996, a bit weaker than expected & the CNH bounced a bit. This is fun. If a currency needs a daily fix & the fix depends on both a formula & a "counter cyclical factor", basically whatever policy mandate, & FX can only be +-2%, & the PBOC says it's "managed" then...
@Trinhnomics said SK in particular was caught in the “crossfire” of the escalating US-China trade tension. “As Chinese demand declines, Korean exporters feel the pain of the trade war most acutely & why the Korean won has depreciated much more than the CNH
“We expect Asian central banks to keep easy monetary policy as economies remain weak,”said @Trinhnomics . China’s decision to let the yuan tumble adds “new headaches” for the region’s policy makers & forecasting rate cuts in India, the Philippines...
NZ just cut rates by 50bps to 1% 😮, 25bps more than consensus. RBI next, we expect it to cut rates by 25bps

#CurrencyWar 🕊️🕊️🕊️🕊️
Interestingly, the AUD moved downward vs USD on this move (kiwi just lost 1% vs USD). So the RBA held but this NZ cut 🐏🐑🐄🐮will likely spur some action too by the RBA if it weren't already dovish.

#CurrencyWars 🕊️🕊️🕊️ Told u, interesting day 🦘
That cut was deeply felt by the NZD -1% vs USD (btw, that yuan fix on Monday achieved this so u either "fix" it or u cut the price of money 🤗)

🐮🐄🐑🐏 #CurrencyWar the Lord of the Ring edition.
Wanna see something cute? Okay, so NZD/CNY appreciated vs CNY when the PBOC did the weaker-than-expected fix on 5 August.

RBNZ just watched its 🐄🐮🐏🐑products getting more expensive in yuan. Okay, so it's like, I need to sell my milk etc to my precious customers. Bam! 50bps🔪
Ready? This is the Australian dollar #CurrencyWar story:
a) On 5 August, as the RBA was preparing to chill after slashing 50bps, the PBOC fixes the CNY weaker, & so the AUD appreciated against precious customers 🐄🦘🐨😱
b) RBA held
c) CNY fix weaker
d) NZD slashed🔪
e) AUD down!
AUD now the WEAKEST SINCE GFC AT 0.6724 per dollar (let's go to Australia everyone! Best place in the world!!!)

ON SALE!!! #CurrencyWar
India cut rates by 35bps - super duper more than the 25bps expected (okay, just 10bps) to 5.4%. The doves are spreading their wings!!!

#CurrencyWars India edition 🇮🇳 🕊️🕊️🕊️🕊️
Dollar is so 👑during Asian hours:
a) CNY fix was weaker-than-expected
b) RBNZ was like, I will follow wherever YUAN (you) go😉& 🔪rates by 50bps & NZD -1.9% vs USD
c) AUD -0.7% as doesn't want to be left behind
d) RBI 🔪rates by 35bps & INR weakens vs USD & CNY

Bank of Thailand cut!!! Yay!! Called it (quoted in a paper by @SiegfridAlegado ) Wooo hooo 🍾


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