PBOC to impose reserve ratio on offshore yuan accounts

FXStreet (Bali) - Effective Jan 25th, the PBOC is set impose reserve ratio on offshore yuan accounts, Bloomberg reported over the weekend, citing people familiar with the matter.

The move is an attempt by the PBOC to discourage speculators with a bearish view on the Yuan to actively short the currency as it makes borrowing the currency a more expensive proposition. The news should act as a positive input to strengthen the offshore Yuan today, which may potentially favour 'risk on' trading.

Jan 17, 2016

USD/JPY: en-route for 116.10 - FXStreet

Valeria Bedrnarik, chief analyst at FXStreet explained that the American dollar gave up all of its weekly gains against the greenback on Friday, following worse-than-expected data, as US Retail Sales came out negative for December, while Industrial Production during the same month, shrunk by 0.4%, doubling expectations of a 0.2% decline.

AUD/USD opening at fresh lows; more to go?

AUD/USD extended its decline last week and reached lowest levels since 2009 printing 0.6827 the low on Friday. The antipodeans have not had much of a respite this year so far with the Aussie sliding from a touch above the 0.70 handle in a short period of time as commodities and China were the consideration very early on at the start of 2016's trade.