Due for China today is the FX Reserves data for December. I haven't got a scheduled time for the release.
But, its expected sometime Thursday.
- In November, reserves fell by $87.22bn to $3,438.28 trillion
- Reserves are at their lowest since 2013, from a peak over $4tln in June of 2014
- The prior month, October (yeah, d'uh) showed an $11bn increase - this was the first increase in 6 months
While eyes will be on the data, developments in past weeks and particularly the past few days have superseded its importance:
- The onshore-offshore yuan rate spread has surged (ie. CNH much weaker than CNY, indicative of market expectations for further yuan declines)
- The PBOC has stepped up the provision of liquidity into money markets with a big injection on Tuesday
- The sharp falls to open the year in Chinese equities have impacted risk sentiment in global markets
While the importance of the reserves data release has diminished in light of this week's trading, expectations are for a $23bn fall in reserves in December. A miss on this will be risk negative again.
