Still the most important chart out there …redux
I would say a “high percentage” of the Americans out there are going to be really excited about $SHAK doing a secondary offering when, overnight, the WORLD’s 2nd largest economy was at it again …
Bloomberg: “China’s move has raised the risk of a “currency war” as export rivals seek a weaker exchange rate to stay competitive, according to Stephen Roach, a senior fellow at Yale University and former non-executive chairman for Morgan Stanley in Asia.
“It’s hard to believe this will be a one-off adjustment,” Roach said. “In a weak global economy, it will take a lot more than a 1.9 percent devaluation to jump-start sagging Chinese exports. That raises the distinct possibility of a new and increasingly destabilizing skirmish in the ever-widening global currency war. The race to the bottom just became a good deal more treacherous.””
WSJ: “The stability in the [yuan] over the past few months, in the face of a stronger [U.S. dollar], had helped to serve as somewhat of an anchor for the region’s currencies,” said Khoon Goh, senior forex strategist at ANZ Research. “With today’s move, this is clearly no longer the case.” The risk of further yuan weakness, he added, would pressure Asian currencies even lower.”
USA Today: “A devalued currency is sure to boost foreign trade by making Chinese goods cheaper overseas. In the process, it helps guarantee that Chinese factories will keep their work forces mostly intact, with millions on payrolls, and help avoid the political turmoil that mass layoffs could produce.”
So, again, please pay attention to these moves folks. They are “big time” and show the global macro picture … currencies run EVERYTHING.
That being said, as a pure play chartist/pattern recognition dude … 6.3351-6.3600 are key. We get thru those and things could really heat up, so to speak.
Isn’t this fun?
Rock on, ok?
What is the Chinese Central Bank up to …?
Per Bloomberg.com a couple hours ago:
The People’s Bank of China reduced its benchmark rates for the first time since 2012 a week ago, supporting growth in an economy set for the slowest full-year expansion in two decades. Yesterday’s auction window was the first since July that the monetary authority didn’t offer repurchase agreements at, and maturing contracts added a net 35 billion yuan ($5.7 billion) to the financial system this week, the most since August.
watch this … closely.