EM ASIA CREDIT: China Hongqiao (HONGQI, NR/BB/BB+ ) new $ deal
"*IPT: CHINA HONGQIAO 3.5Y USD REG S NOTES AT 7.40% AREA" - BBG
Chinese aluminium company, China Hongqiao, the second largest producer in the world after Chinalco is coming to the market with a new 3.5 year $ deal. The issuer came in January launching a 3y $ deal.
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FOREX: JPY Crosses Consolidate, While CNH/JPY Makes New Lows
JPY crosses are consolidating at or near their recent highs as the market attempts to digest Monday's reaction to the added uncertainty, normally JPY crosses would follow risk lower, but the USD got sold across the board. CNY/JPY though continues to be the outlier and made new lows around 19.27. “BOJ Officials see little need to change their gradual rate hike stance despite US trade uncertainties, " people familiar said. They are considering cutting inflation forecasts due to a stronger yen and cheaper oil.” (per BBG)
- EUR/JPY - Overnight range 161.78 - 162.67, Asia is trading near the lows around 161.90. EUR/JPY consolidates in a 161 - 163 range, watch for another leg lower in risk to test last week's lows around 161.00. A break here could reinstate the momentum lower.
- GBP/JPY - Overnight range 188.04 - 188.84, Asia trades around 1.8845. Sellers looking to reengage the market on bounces back towards 190.00. Watch for a break below last week's lows around 187.50 should risk remain under pressure.
- AUD/JPY - Overnight range 90.05 - 90.65, Asia is currently dealing 90.50. The pair has traded sideways in a 90.00/92.00 range last week, watch for any resumption of risk aversion to test that lows and if it breaks expect momentum lower to resume.
- CNH/JPY - Monday range 19.2757 - 19.4600, Asia testing and printing new lows sub 7.2700. CNY/JPY continues to gain momentum lower, sellers might look to reengage on bounces back towards 19.50 . The first target looks to be around the 18.70 area.
Fig 1 : CNH/JPY Weekly Chart
Source: MNI - Market News/Bloomberg
MNI: CHINA PBOC CONDUCTS CNY220.5 BLN VIA 7-DAY REVERSE REPO TUES
- CHINA PBOC CONDUCTS CNY220.5 BLN VIA 7-DAY REVERSE REPO TUES
CNH: USD/CNY Fixing Edges Higher, Error Term Steady
The USD/CNY fix was 7.2074, against a BBG market consensus of 7.2892.
- Today's fixing was slightly higher than Monday's outcome (7.2055), despite the market consensus for today being slightly below Monday's estimate (7.2926).
- The fixing error was little changed at -818pips.
- USD/CNH is back to around 7.3050 in latest dealings around 0.15% weaker in CNH terms for the session so far. The pair continues to see support around the 50-day EMA or levels just under this support point. Broader USD sentiment is somewhat firmer in early Tuesday dealings.
