Ringgit Weakens to Break Through Key Technical Level.
Dec-13 00:37
- USD/MYR is up at 4.4447 in Kuala Lumpur this morning; versus yesterday's close of 4.4383.
- The Ringgit has broken through the key technical being the 20-day EMA of 4.4358 with next resistance being the 200-day EMA at 4.4932.
- Bloomberg Dollar spot index is -0.03% lower.
- Broader USD trends were mostly positive post yesterday's onshore close, which is likely impacting, while early G10 trends are against the yen in Friday trade, another MYR headwind all else equal.
- USD/MYR one-month implied volatility is up at 5.575 from yesterdays close of 5.475%
- Malaysia's 10-year bond yield is at 3.815%
- Malaysia 5 yr USD CDS at 42bps (yesterday close 42bp, 5-year low 38bp in 2020).
Headlines
- Denmark seeks to forge closer ties with Southeast Asian nations in a bid to become less dependent on China, Foreign Minister said (source: BBG).
Data Next Week
18 DEC:
- Exports YoY
- Imports YoY
- Trade Balance MYR
20 DEC
- CPI YoY
- Foreign Reserves
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AUSTRALIA DATA: Wages Slightly Below Mkt Consensus, Limited A$/Bond Reaction
Nov-13 00:35
The Australian wages print was +0.8%q/q, slightly below the consensus of +0.9%. In y/y terms we rose 3.5% against a 3.6% forecast and 4.1% prior.
- The A$ dipped slightly on the result, making fresh session lows of 0.6517, but we sit slightly higher now in the 0.6520/25 region, still off nearly 0.15% for the session. Recent lows at 0.6513 (post the US election outcome) are nearby.
- In the bond space, we were 2-3bps richer, but that trend quickly reversed.
FOREX: USD Ticks Higher, But Index Sub Tuesday Highs, Q3 Wages In Aust Coming Up
Nov-13 00:22
Early Wednesday USD trends remain skewed in favour of the USD. The BBDXY index was last around 1281.00, around 0.10% firmer for the session so far. Intra-session highs from Tuesday were at 1282.16.
- Losses for the majors are around 0.10-0.15%. AUD/USD is near 0.6520, close to both Tuesday lows and post election lows from last week.
- USD/JPY is ticking up last near 154.80. The yen has largely ignored better PPI data which should support CPI headline trends
- NZD/USD was last under 0.5920.
- In the cross asset space, US equity futures are down a touch, while US yields are little changed in the first part of dealing, after Tuesday's surge.
- Coming up shortly we have Q3 wages data for Australia. The consensus expects a 3.6% y/y print, versus 4.1% prior. The event risk calendar is light for the remainder of the Asia Pac session.
AUSSIE BONDS: May-30 Supply Goes Well
Nov-13 00:19
The latest ACGB May-30 auction priced comfortably through mids, with a weighted average yield 2.45bps below prevailing mids (Yieldbroker data).
- Today’s cover ratio of 3.6688x was well above the previous auction’s 3.0187x, indicating robust demand.
- Several factors likely influenced the outcome. Positively, the current yield was about 50bps higher than at the early April auction, attracting interest.
- Despite the line's exclusion from the YM and XM baskets and weakening global bond sentiment since September, demand remained resilient.
- The cash line has remained steady in post-auction trading.
