JPY: USD/JPY - Regains Upward Momentum As US Yields Rise Into FOMC
The overnight range was 155.98 - 156.95, Asia is currently trading around 156.90. The pair built on ...
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ASIA: Coming Up In Asia Pac Markets On Monday
| 2330BST | 0730HKT | 1030AEDT | RBA's Hauser Speaks |
| 2350BST | 0750HKT | 1050AEDT | BoJ Oct Meeting Summary Of Opinions |
| 0340BST | 1140HKT | 1440AEDT | BoJ's Nakagawa Speech |
| 0500BST | 1300HKT | 1600AEDT | Japan Sep P Leading & Coincident Indices |
Source: Bloomberg Finance L.P./MNI
NZD: NZD/USD - Trades Heavy Toward 0.5600 While Shutdown Persists
The NZD/USD had a range Friday night of 0.5606 - 0.5633, Asia is trading around 0.5625. Risk initially traded very weak on Friday night but roared back into the close and looks to be opening up supported by talk of a deal potentially coming together in Washington regarding the shutdown. The NZD continues to trade heavy but it is prudent to be wary of what the reaction to the end of the US shutdown might look like. I am a little wary of positioning in the NZD market though I still suspect any decent bounce will again attract sellers. The first sell area on a pullback would be around 0.5750 and then the more pivotal 0.5850 area.
- Bloomberg is reporting, “Senate Republican leader John Thune said a deal is “coming together” as he planned a Sunday vote to end the US government shutdown.”
- Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.5380(NZD460m Nov 13), 0.5600(NZD538m Nov12), 0.5800(NZD461m Nov 12) - BBG
Fig 1: NZD/USD Spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
AUD: AUD/USD - Finds Support & Consolidates Above 0.6450
The AUD/USD had a range Friday night of 0.6468-0.6499, Asia is trading around 0.6495. Risk initially traded very weak on Friday night but roared back into the close and looks to be opening up supported by talk of a deal potentially coming together in Washington regarding the shutdown. The AUD/USD has found support and consolidated just above the 0.6450 area. A lot rides on if and when a deal is done in Washington but I suspect we get a knee-jerk higher in risk on the initial announcement that the shutdown has ended. The AUD will be one the main beneficiaries should this materialise with the RBA signaling it could be done with easing for now. All eyes will be on Washington to start the week.
- Bloomberg is reporting, “Senate Republican leader John Thune said a deal is “coming together” as he planned a Sunday vote to end the US government shutdown.”
- Bloomberg: “ You’ve got the RBA essentially signaling that it’s done easing, at least for now,” said Elias Haddad, a senior strategist at Brown Brothers Harriman in London. “The combination of relative monetary policy and resilient global economic activity can lead the Australian dollar to end the year closer to 0.67.”
- Options : Closest significant option expiries for NY cut, based on DTCC data: 0.6560(AUD447m), 0.6615(AUD 464m), 0.6630(AUD462m). Upcoming Close Strikes : 0.6500(AUD1.22b Nov 12), 0.6530(AUD882m Nov 12)- BBG
- Data/Event: Westpac Consumer Conf, NAB Business Confidence
Fig 1: AUD/USD spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
