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ForexLive Asia-Pacific FX news wrap: China ‘three red line’ property curbs may be eased

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market had settled in to wait for the US jobs data (December NFP due
later today) and major FX has traded in fairly confined ranges.
However, continued news out of China as the country makes efforts to
reopen and to get on top of its property crisis kept interest alive.

news was of China’s central bank, along with China’s banking and
insurance regulator, extending a mechanism for lower mortgage rates
for first-time home buyers. This was first introduced in September
last year but was made more flexible. It will lower the cost of
buying a home and help better support housing demand and the property

in the session news crossed of likely easing of the “three red
lines” property restrictions introduced in property boom times back
in August of 2020. Please see the two posts above for more on this.
The yuan gained, as did Chinese stocks again today. AUD and NZD caught
a small pop on the 3 red lines news also.

Japanese wages data showed the biggest drop in inflation adjusted pay in 8 years. USD/JPY rose on the session, not quite reaching back to 134.00.

politics continued mired in deadlock. Kevin McCarthy was blocked
for the 11th time in his bid to become US Speaker. The House
reconvenes at noon Friday for the 12th
round of voting, and most likely more than that. Otherwise, its a big
day coming up in the US with the December nonfarm payroll report
(previews above) along with a number of Federal Reserve speakers on
the docket (see bullets above).

This article was written by Eamonn Sheridan at