Flash: China Premier Li indicates policy to remain tight - Nomura

FXstreet.com (Barcelona) -The State Council in China held a meeting on Wednesday, with the main topic being the rebuilding
urban slum areas, although Premier Li took the chance to make a few remarks on the general picture of economic conditions and the policy outlook. His message remains unchanged from previous speeches, says Nomura Economist Zhiwei Zhang.

Li did not mention "economic difficulties" or recent market volatility and the liquidity squeeze, although he did say "economic policies should stay stable and consistent, as Zhang explains. The statement suggests that the tightening policy stance will likely persist, Zhang believes. Overall, the statement reinforces Zhang's view "that the monetary policy stance will remain tight." Zhank keeps the 30% probability that GDP may side below 7% in Q3 or Q4.

Flash: AUD/CAD, mid/low 0.99 might be retested

After pushing through trend channel resistance at 0.9745, sustained gains in the AUD/CAD as the week comes to an end, will put the pair in a position to retrace a little more of the sharp slide seen over the past two months, says Shaun Osborne, Chief FX Strategist at TDS.
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Flash: EUR could continue to trade defensively - ANZ

The EUR could continue to trade defensively, says Brian Martin, FX Strategist at ANZ, who believes a close below the EUR/USD 1.3020-50 area may signal a possible test down to the 1.25-1.27 range. The EUR performance will depend largely by the European Commission summit on 27-28 June and the ECB policy decision next week, Martin added.
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