Overnight Price Action
Asian stocks sold off, led by 1.5% falls in both the Nikkei and Shenzhen. The Kospi and Hang Seng also lost 1% and 0.3% respectively. ASEAN markets fell, albeit more modestly by 0.2% to 0.4% while S&P futures held flat.
NZD underperformed in G10, down 0.4% against the USD to 0.832, weighed by comments from the RBNZ Governor that increased interest rates would put upward pressure on the exchange rate, and recent macro prudential measures provide scope to delay rate hikes. AUDNZD rose to 1.15, a two-month high. Pressures also mounted on other majors, AUD edged down to 0.960 and EUR to 1.380. USDJPY is relatively stable at 97.20.
EM Asia FX were more mixed. USDIDR spot broke below 11,000 and USDMYR below 3.15 ahead of the Malaysia’s budget announcement. USDKRW rose to a high of 1064 on BoK’s bid but has since eased slightly to 1061.
China’s 7 day repo fixing rose another 21bps to 4.88%; 1y repo rate traded a high of 4.15% on the open before easing to 4.07% currently. US 10y was largely unchanged at 2.51%.
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Credit Suisse