IDR: Rupiah Stronger Again, Nears Key Tech Level

• The biggest liquidity injection in several weeks and comments from the PBOC Governor that central bank buying of bonds will resume (as reported on Xinhua)  was enough to give bond markets a bid this morning.  
• The 10-Yr bond future is up +0.285 to 108.43 its biggest one day gain since April.  The move sees the 10-Yr back above all major moving averages, bouncing off the 20-day EMA.
• The 2-Yr bond future is up +0.09 to 102.47 trading through the 20, 50 and 100-day EMA to be near to the 200-day EMA of 102.47 which it last traded above in June.
• CGBs are consolidating after a late afternoon rally yesterday, with the 10-Yr settling at 1.80%.  It has traded in a 1.80 - 1.90% for several weeks and a break below could see it return to the 1.70 - 1.80% range it traded in through August and September. 

The USD is continuing to moderate, the BBDXY off a little over 0.10% to be 1210/11 in the first part of Tuesday trade. Recent lows were back around 1205. Underperformers from Monday, JPY and CHF, are seeing some catch up, particularly on the yen side. A reminder from the Japan authorities around FX moves has likely helped USD/JPY lower, while a visit from key US officials (including President Trump) has also potentially encouraging some paring of longs in the pair. Still, the 50-day EMA is sub 150.00 (versus current levels of 152.40/45, off 0.30% so far today), so there is still some gap to important support points. USD/CHF was last near 0.7940/45, down around 0.15%. 

• Earlier we saw: "JAPAN ECONOMY MINISTER KIUCHI: IT'S IMPORTANT TO AVOID RAPID, SHORT-TERM FLUCTUATIONS IN FX MOVES" (via RTRS), which reminded the market intervention risks are still apparent.
• Takaichi/Trump meeting headlines have been fairly high level, with the two leaders signing a joint framework on critical minerals.
• AUD and NZD are drifting a little higher, more so NZD/USD, last near 0.5780. The pair is looking to build a base above its 20-day EMA (near 0.5770) and test through 0.5800. Data outcomes today suggest gradual improvement in the labour market, with NZ yields edging higher.
• AUD/USD was last around 0.6560/65, lagging yen and NZD but still above all key EMAs. Earlier Oct highs were close to 0.6630.
• USD/CNH has tested under 7.1000, but has been unable to sustain the break so far.
• Cross asset trends are muted from a US equity futures standpoint, with steady trends so far today. US Tsy yields are mixed, with some modest gains at the front end.