ForexLive Asia-Pacific FX news wrap: China outlines more economic support

• ICYMI – Bezos-backed start-up launches EV truck for less than $US20,000. Tesla killer?
• AUD traders note – RBA Assistant Governor (Financial Markets) Kent speaking tomorrow
• China’s vice commerce minister (more): Exports steady in April, will expand imports
• PBOC deputy governor says will cut RRR, interest rates, at an appropriate time
• China Gold Association reports gold consumption fell in Q1
• China’s news conference on boosting the economy and jobs has begun
• China’s State Council approved 10 new nuclear reactors over the weekend
• Toyota says it was exploring a potential investment in the key parts supplier – buyout
• More on Japan’s top currency official denying Bessent supports a stronger yen
• PBOC sets USD/ CNY reference rate for today at 7.2043 (vs. estimate at 7.2828)
• China Securities Daily says PBoC is seen cutting the RRR and interest rates in Q2
• Yen traders note – Japan is on holiday Tuesday
• Mr Yen says Completely untrue about media report that Bessent said stronger yen preferable
• Bank of Japan to “hit pause” on rate hikes at this week’s meeting – Trump tariffs cited
• More on the the Financial Times Trump Slump for US transport firms
• UK Times says “Trump’s tariffs are set to drive down UK economic growth”, circa 50% cut
• Weekend data: China’s YTD industrial profits rose 0.8% y/y in Q1 (prior -0.3%)
• Trump says he think Ukraine ready to concede Crimea to Putin (contradicting Zelensky)
• US Ag sec says talking to 100 countries every day on trade, including China
• Trump says ‘confines of a deal’ are there on Ukraine / Russia
• US equity index futures are set to open for the week’s trade at the top of the hour
• U.S. Treas Sec Bessent didn’t back Trump assertion that China tariff talks were under way
• Heads up for a China news conference today – to address promoting growth, employment
• Financial Times on “Demand slump fuelled by Trump tariffs hits US ports and air freight”
• ECB’s Kazaks urges caution on further European Central Bank rate cuts
• ECB’s Simkus says the Bank could lower interest rates at least two more times this year
• Trade ideas thread – Monday, 28 April, insightful charts, technical analysis, ideas
• Monday morning open levels – indicative forex prices – 28 April 2025

Weekend:

• Walmart has notified Chinese suppliers to resume shipping goods – report
• ECB policymakers warm up to a June cut — sources report
• Canada votes on Monday: What the polls are saying and what’s at stake for the loonie

We
have had some market swings during the session here to open the new
week, but not to the extent that we have become accustomed to.

USD/JPY
traded above 143.85 (plenty of talk of offers gathering ahead of 144
seemed accurate today) and to lows under 143.40. Japan’s top
currency official, vice finance minister Atsushi Mimura, put in a
good deal of effort into denying that US
Treasury Secretary Bessent supported
a strong yen.

EUR,
AUD, NZD, GBP all traded in ranges and as I update are little net
changed on the day.

USD/CAD
is a little higher as we head into Monday’s Canadian election where
polls indicate a comeback win for Carney’s party. Let’s see if
the polls get it correct.

From
China we had a news conference from the National Development and Reform
Commission (China’s ‘state planner’), the Ministry of Human Resources
and Social Security, the Ministry of Commerce, and the People’s
Bank of China. It outlined further measures to prompt economic growth
and employment. As is usually the case nitty gritty details were not
discussed.

Separately,
China announced that domestic
gold production grew
1.5% YoY in Q1, while
gold
consumption slumped
nearly 6%.

Most
notable from the weekend, U.S. Treasury Secretary Scott Bessent spoke
with US media on Sunday. Bessent said that while he spoke with his
Chinese counterparts last week during International Monetary Fund
meetings in Washington, tariffs were not mentioned! More
significantly, Bessent refused to back up Trump’s assertion that
Trump had spoken with China’s President Xi:

• “I
  don’t know if President Trump has spoken with President Xi”

Yikes
… lets see how Trumpo responds to being thrown under the bus by
Bessent!

US
equity index futures have traded a little lower in Sunday evening (US
time) trade, barely denting their big surge on Friday though.

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