The Traderszone Network

Xinhua News Agency reports (via MNI) on commentary from Ma Jun, chief economist of the PBOC’s research bureau:
– Says the interest rate and deposit reserve ratio cuts don’t represent a shift in monetary policy bias

The Wall Street Journal reports on further speculation the People’s Bank of China will further weaken the yuan
– to 6.75 per dollar over the next year
The Journal cites Stephen Jen, managing partner of London-based hedge fund SLJ Macro Partners LLP

When China moved to devalue the yuan earlier this month, it was seen by virtually everyone for exactly what it was: a tacit admission that the country’s economy was in freefall and a desperate attempt to boost exports stinging from REER appreciation of more than 14% in just a little over twelve months. 

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From MNI’s Sophia Rodriguez (a must read on the RBA, follow on Twitter @srodrigues45)
In (very) brief:
– Prospects of a delay in the first Federal Reserve rate hike and concerns over slowing Chinese growth have increased the Reserve Bank of Australia’s preparedness to lower the cash rate further
–

On August 11, China devalued its currency, and in the subsequent 3 days the onshore Yuan, the CNY, tumbled by some 4% against the dollar. Then, as if by magic, the CNY stabilized when China started intervening massively, only this time not through the fixing, but in the actual FX market.

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Glenn Stevens, Reserve Bank of Australia Governor, at the National Reform Summit:
Full text of Stevens’ speech is here:
‘Reform’ and Economic Growth
, h/t to Anthony at LiveSquawk (he’ll also give you a !)

The markets closed on their lows today after a strong open. All the indexes closed on their lows and as you can see above, the SPX closed 60 cents above yesterdays intraday low.

It was a very disappointing turnaround Tuesday and it was bearish action.

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