ForexLive Asia-Pacific FX news wrap: Oil steadies

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News
and data flow was light during the session here with eyes now turning
towards the US jobs report not due until Friday.</p><p>China
was a focus. Chinese
government bond yields fell to their
lowest in more than three years. The
yield on the 10 year fell towards 2.50% and hit lows last seen in May
of 2020. Expectations of further policy easing from the People’s
Bank of China are accelerating. Alongside tumbling yields were falls
on stock markets. China's
blue-chip Index CSI 300 Index was
down more than 1% at one stage, with falls also in Shenzen and on the
Shanghai Composite. Hong Kong’s Hang
Seng Index dropped
also.
</p><p>Fitch
downgraded four Chinese National Asset Management Companies (see
bullets above).</p><p>The
People’s Bank of China weighed in with support for the yuan at the
reference rate setting today with a rate more than 500 points lower
for USD/CNY than models estimated.</p><p>Oil
traded steadily with a number of tailwinds over the past 24 hours,
including the bomb attack in Iran, OPEC’s statement re-affirming a
commitment to unity and monitoring, and US warnings to Houthis to
cease attacks on Red Sea vessels or face potential military action.
The private survey of inventories showed a bigger headline crude draw
than expected. US government inventory data follows on Thursday
morning US time.
</p>

This article was written by Eamonn Sheridan at www.forexlive.com.