Equity markets have rallied across the region with the Nikkei up 1.3% and the HSI up 1.4%, and S&P futures have risen 0.9%. Only Kospi is down a marginal 0.1% in response to the overnight fall in JPYKRW. After falling overnight, EURUSD is flat at 1.290. USDJPY has nudged up to 100.25 while AUDUSD has rejected its overnight rally, easing to 0.9129. Most emerging Asian currencies are slightly weaker against the USD, led by a 0.3% fall in the KRW to 1142.30. USDCNY fixed 35 pips higher to 6.179, keeping the fix essentially flat for the ninth trading day. One risk a steady fix (but rising CNY TWI) implies is a move up in USDCNY spot (and USDCNH with it) from the lower half of the bands to the upper half.
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Credit Suisse