China cuts 1yr LPR by 10 bps vs 15 bp expectation Dollar/yuan...

	  China cuts 1yr LPR by 10 bps vs 15 bp expectation 

	  Dollar/yuan up beyond 7.3; Aussie and kiwi vulnerable 

	  Yen on intervention watch, steady at 145.45 

The dollar began on a firm footing on Monday, following five straight weeks of gains, as investors looked ahead to the Federal Reserve's Jackson Hole symposium for a guide on where rates might settle when the dust of this hiking cycle clears.

The dollar made a gain of 0.7% on the euro EUR=EBS last week, inched ahead on the yen and surged by more than 1% on the Antipodean currencies as U.S. Treasury yields leapt in anticipation of interest rates staying higher for longer.

In early trade, the Australian dollar AUD=D3 , at $0.6402, and the New Zealand dollar NZD=D3 at $0.5913 were slightly lower and uncomfortably close to last week's nine-month lows after a rate cut in China disappointed market expectations.

China cut its one-year benchmark lending rate CNYLPR1Y=CFXS by 10 basis points and left its five-year rate unchanged, against economists' expectations for 15 bp cuts to both.

The yuan CNY=CFXS slid to the weak side of 7.3 per dollar despite a firm fixing of its trading range by the central bank. It last traded at 7.3011, though so far keeping off last week's lows beyond 7.31, as that had brought state banks into spot markets in London and New York hours as buyers.

The Antipodean currencies often function as a liquid proxy for the yuan owing to the region's exports to China.

"The Australian dollar will continue to underperform this week in our view," said strategists at the Commonwealth Bank of Australia in a note to clients.

"We consider there is a growing risk that the Aussie dips below $0.60 before year-end. It will likely take a big Chinese stimulus package focused on commodity-intensive infrastructure spending to turn around the downtrend."

Like the yuan, the yen JPY=EBS is also on intervention-watch, having fallen to levels around which authorities stepped in last year. It was steady at 145.19 per dollar in early trade.

The euro held at $1.0871. Sterling GBP=D3 hovered at $1.2738. The Swiss franc CHF=EBS was just above a six-week low made last week at 0.8817 per dollar.

Apart from waiting for news of stimulus in China, the upcoming Jackson Hole symposium - where Fed chair Jerome Powell is due to speak on Friday - is markets' major focus and may set the direction for U.S. yields.

Ten-year yields US10YT=TWEB rose 14 basis points for the week and touched a 10-month high of 4.328%, within a whisker of a 15-year high. Thirty-year yields US20YT=RR rose nearly 11 bps to their highest in more than a decade.

The theme this year for the annual gathering in Wyoming is "structural shifts in the global economy".

"Two things that may come across are: decades of ultra-low rates backed by ultra-low inflation may be over," said Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore.

"And global policy-makers may prefer to maintain restrictive real rates for a while, thereby keeping risks from volatile inflation alive."

Bitcoin BTC=BTSP , which was battered to a two-month low last week as rising U.S. yields and China's slowing economy drove a wave of selling, nursed those losses at $26,129.

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	Currency bid prices at 0147 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS																	   

							  $1.0871		 $1.0873	+0.00%		  +0.00%	  +1.0883	 +1.0872 
																								 
 Dollar/Yen		JPY=EBS																	   

							  145.3850		145.3300   +0.06%		  +0.00%	  +145.4250   +145.2550 
																								 
 Euro/Yen		 
				  S>		  158.05		  158.03	 +0.01%		  +0.00%	  +158.1500   +157.8000 
																								 
 Dollar/Swiss	  CHF=EBS																	   

							  0.8825		  0.8828	 -0.05%		  +0.00%	  +0.8825	 +0.8814 
																								 
 Sterling/Dollar   GBP=D3																		

							  1.2733		  1.2736	 +0.06%		  +0.00%	  +1.2750	 +1.2735 
																								 
 Dollar/Canadian   CAD=D3																		

							  1.3547		  1.3551	 -0.05%		  +0.00%	  +1.3555	 +1.3540 
																								 
 Aussie/Dollar	 AUD=D3																		

							  0.6399		  0.6405	 -0.08%		  +0.00%	  +0.6418	 +0.6395 
																								 
 NZ				NZD=D3																		

 Dollar/Dollar				0.5910		  0.5924	 -0.16%		  +0.00%	  +0.5936	 +0.5911 
																								 
																								 
	 
All spots  FX=  
Tokyo spots  AFX=  Europe spots  EFX=   Volatilities  FXVOL=   Tokyo Forex market info from BOJ  TKYFX  
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World FX rates	https://tmsnrt.rs/2RBWI5E 

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