The HK session started with a carry on from the NY close with “risk on” as further stops were triggered in EURUSD as it traded up to 1.4384, while AUD went up to 1.0617.
The session turned on more dovish RBA minutes – hinting that there was no urgent need to raise rates – while the session was dominated by Fitch comments that it would regard a Greek debt exchange, or voluntary rollover, as default. Comments that it it would put the US on “rating watch negative” if US debt ceiling not raised by 2nd August also weighted. After the initial move lower we saw Macro buyers names emerge in both EUR and AUD while USD/Asia was relatively stable as the China fix came in a fraction lower than yesterday at 6.4690
Orderbook
AUDUSD: Real money bids below below around 1.0525. Orderbook only has bids below 1.04-1.0525 (not in great size but no stops)
EURUSD: Real money stops above around 1.4450
USDJPY: 2nd tier reserve name offers around 80.25 with system stops above here around 80.50
USD/Asia run:
USDKRW 1081 (Friday London Open 1086)
USDTWD 28.97 (28.94)
USDCNY 1yr 6.3915 (6.3845)
USDPHP 43.64 (43.80)
USDIDR 8635 (8650)
USDINR 45.12 (45.20)
USDMYR 3.0385 (3.0435)
USDSGD 1.2350 (1.2377)
HSBC Global Research