China’s Finance Minister Liu: Will strengthen cooperation between fiscal and monetary policy

Dhwani Mehta FXStreet

China's Finance Minister Liu Kun said on Tuesday that Beijing “will strengthen cooperation between fiscal and monetary policy.”

Additional takeaways

“Will implement greater tax and fee cuts this year.“

“Will step up central govt's transfer payments to local governments this year.”

“2022 transfer payments will help offset impact from tax cuts on local revenues.”

Market reaction

USD/CNY is off the multi-day highs of 6.3430, still up 0.08% at 6.3405, as of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD seems vulnerable near 0.6800, 10-month low amid bullish USD

AUD/USD languishes near a 10-month low during the Asian session on Friday, awaiting a break below 0.6800 before the next leg up amid a bullish US Dollar. Firming Fed rate-hike expectations, along with fading hopes for US-Iran diplomacy, help the USD hold gains at its highest level since April 2025. Moreover, the RBA’s dovish tilt undermines the Aussie and backs the case for further losses.

USD/JPY bulls turn cautious near 160.00 amid intervention risks

USD/JPY enters a bullish consolidation phase around its highest level since early September as bulls turn cautious amid intervention risk near 160.00. Meanwhile, the downside seems cushioned as the wide US-Japan interest rate gap keeps the Yen carry trade active. Furthermore, the possibility of a jumbo Fed rate hike and Middle East uncertainties hold the US Dollar near a 19-month top, supporting the currency pair.

Gold jumps 1% to reclaim $3,900 as USD corrects ahead of PPI

Gold rebounds nearly !% from Thursday’s YTD low, reclaiming $3,900 despite a bearish fundamental backdrop. A fresh correction in the US Dollar from 19-month highs helps Gold find some respite ahead of US PPI inflation data. However, a surge in aggressive Fed rate-hike expectations could check the recovery of non-yielding bullion.

Bitcoin slips below $70,000 for the first time since August

Bitcoin is attracting some serious sellers, pushing it below $70,000 on Friday after an over 3% decline the previous day. The Crypto King is down over 5% so far this week, and a bearish close could mark its sixth consecutive week of losses. The technical outlook for Bitcoin is bearish, with sellers tightening their grip despite overextending the downtrend to oversold levels.

Jensen Huang is out ahead of Nvidia earnings

Oh, what a tangled web we weave, when first we practice to deceive – it’s been all about Nvidia this week, and the scandal surrounding its CEO Jensen Huang and his extra marital activities. The markets appeared to have already made up their minds with Nvidia shares off sharply from their recent highs on the basis that CEO Huang will be forced out.

What the US CPI headline doesn’t tell you about inflation

Brent crude has fallen about a third since mid-October on hopes the Iran war is ending, but diesel, freight and fertiliser costs haven't followed. Those costs reach US consumer prices in stages through 2027 and could keep inflation high after gasoline gets cheaper.