HK Overnight Wrap:
Started the day with risk on and equities bid, BOK raising interest rates and the market going long, looking to target the stops higher in AUDUSD and EURUSD. We failed and everyone ran for the door at the same time. USDJPY likewise was trading bid heading into the Tokyo fix, only to get whacked with rumours of ACB selling along side large on-shore players.
The story of FED said to consider expansion of cap reviews to more banks also hurt risk ..
Models short term GBPJPY stops began to go off which helped push the momentum of risk selling lower as equities turned flat to negative. China trade data summary sent before this.
We are trading heavy as we head into the European morning with EUR, AUD and NZD trading just off their session lows. Light flows on the day (GBPJPY selling the only stand-out).
Orderbook:
Post ECB reaction the EUR OB has re-populated itself with topside stops around the 1.4580-90
USDCAD continues to see bid below and offers all the way up, constraining any large moves as the AUD OB is seeing some good bids around the 1.0580 handle with stop below around 1.0550.
USD/Asia run: Friday London Open:
USDKRW 1085 (Thursday London Open 1084.5)
USDTWD 28.755 (28.725)
USDCNY 1yr 6.4425 (6.3980)
USDPHP 43.34 (43.32)
USDIDR 8530 (8535)
USDINR 44.87 (44.91)
USDMYR 3.0210 (3.0230)
HSBC Global Research