Offshore
yuan slid a little further again during the session, with USD/CNH
rising briefly just over 7.20. China’s Ministry of Finance
announced continued tax incentives for New Energy Vehicles in another
drip of stimulus.

USD/JPY
had a minor move higher. We had Bank of Japan April meeting minutes
published today. The Minutes did not provide any reason to expect a
reduction in easing policies any time soon.

Elsewhere
major forex rates did not depart from limited ranges. Traders await
testimony from Federal Reserve Chair Powell Wednesday, US time.

Asian
equity markets:

  • Japan’s
    Nikkei 225 +0.4%

  • China’s
    Shanghai Composite -0.2%

  • Hong
    Kong’s Hang Seng -1.6%

  • South
    Korea’s KOSPI -0.4%

  • Australia’s
    S&P/ASX 200 -0.2%

USD/CNH: