PBOC Governor Yi: China needs to take a market-based monetary and regulatory approach

Early Thursday, Governor of the People’s Bank of China (POBC), Yi Gang crossed wires. His comments, shared by MNI reporter Anthony Barton suggest fundamental changes in the Chinese central bank’s future role.

In addition to preventing the fiscal deficit monetization, PBOC’s Yi pushes for currency stability and sound employment among other issues.

FX implications

Considering the year-end thin trading, coupled with market players’ major attention to Brexit headlines, comments from PBOC Governor couldn’t offer any major moves of AUD/USD and USD/CNY. That said, both the pairs consolidate recent moves from the intraday top and bottom respectively while marking 0.7585 and 6.53 in that order.