45am HKT)
Currency
Currency
EURUSD
1.1074-99
EURJPY
136.51-83
USDJPY
123.07-49
EURGBP
0.71155-29
GBPUSD
1.5556-70
USDSGD
1.3658-96
USDCHF
AUDUSD
0.9605-27
0.7257-0.7311
USDTHB
USDKRW
34.835-870
1165.6-1170.6
NZDUSD
0.6601-50
USDTWD
USDCAD
1.3015-43
USDCNH
6.2162-6.2210
AUDNZD
1.0955-1.1013
XAU
1092.8-1095.8
Key Headlines
There are more China experts now than there were 6plus weeks ago. Almost all the major newspapers this
morning has an article on China and the stock market.
Most of them are negative. Some even criticised the
intervention one FT article said the market needs
scary weeks to become more secure. Should swooning
share prices hit consumer sentiment, China has other
levers to boost demand beyond buying stocks. If its
rulers are wise, investors should expect more unsettling
weeks ahead.
Back in 1998, a publication by Chief Executive of
HKMA, Joseph Yam on why HKMA intervened in stocks
during the Asian Financial Crisis. This is a good read
http://www.hkma.gov.hk/eng/key-information/speechspeakers/jckyam/speech_200898b.shtml
Aussie dollars move was a reflection of China stock
market.
FX Flows
Kiwi had a decent move up this morning, hearsay doing
of leveraged names selling AudNzd. NzdUsd rose to
0.6644 and I heard there are sell orders planted up to
0.6655, with some chatter of 0.6650-option barrier and
stops thereafter from system funds. AudNzd reversed
following AudJpy demand in mid-morning.
It seems that there are sell orders scattered above this
1.1100 from Eastern European names (some from
Russia). Euro crawled to 1.1199 and ran into offers.
Heard sellers are at 1.1100, 1.1120 and 1.1160. Euro bids
are reported at 1.1050 from various names. Think the
resistance in Euro during Asia time is 1.1105, thats the
50-day SMA.
Initial buying of UsdJpy, from the twenties, by German
in Tokyo got no further than 123.31. Japanese banks had
left-hand side fixing to do and forced the Usd to back
away. UsdJpy got to 123.07 post fixing and I heard
UsdJpy bids are reported at 123.00; offers are same at
123.80-85. BOJ will not be participating in ETF today.
Break below 122.85 opens up to stop sell orders.
Asians
Almost all the major newspapers has an article on China
and the stock market. Most of them are negative. There
was a report last night in WSJ that the CSRC said
Chinese government will step up its purchases of stocks
in a bid to prop up the equities market. An interesting
observation by FastFT that July 27 fall of 8.4% isnt the
biggest one day fall. Back in 1995 May 23, the index fell
16.39% and there are 9 other times the index dropped
more than 10.3%.
Local mainland guys believe that the semi-officials will
step in to prevent Shanghai Composite Index from going
below 3500. Also speculators are short the A-50 Jul
futures, which expires Thurs and we could see some
squeeze in that too.
And so they said plunge protection team was in buying
Shanghai!
Usd/Asia touch offered from open. PBOC fix at 6.1154
was in line with markets expectations that makes 35
days. Onshore spot USDCNY is stable and Usd sentiment
got USDCNH back into this 6.21-handle.
Good news as South Korea declares an end to MERS
outbreak however Korea Composite Index in red has
prevented much Krw strengthening. Onshore spot
opened at 1167.5, settled down at 1166.5 by end of
morning.
Singapore dollar is probably best performing Asia
currency despite negative STI. UsdSgd opened in the
1.36-ninties and drifted towards low 1.3658. We should
see some support in the 1.3635-area. Singapore General
Elections talk no firm date but highly likely in Sept.
UsdMyr backed off from where we started but overall
still bid. Opened at 3.8420, slowly drifted to 3.8330-50.
Things have shifted in Malaysia. After those remarks
from the Deputy PM, news from Malaysian media this
These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.
These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.
These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.