HK session wrap:
A very quiet start to the Asian session as several markets return after a long weekend.
EURUSD opened on firm demand from macros testing the 1.4600 level, We have rallied on the open to 1.4630…no reserve flow seen direct , but there is demand to buy a dip…so suggestions of deamdn from this sector on the open would appear to have substance.
USDJPY remains underpinned by importer demand around the 80.00 level
AUD traded firmer in a 1.0711-49 range ahead of the RBA decision which left rates at 4.75%, falling sharply in the wake of the announcement to 1.0685 with the accompanying rhetoric somewhat less hawkish that expected. But again…better buyers seen on dips here too…
Cable traded a 1.6324-60 range drifting for most of session around 1.6350, with EURGBP trading 0.8910-36.
USD/Asia run:
USDKRW 1082.5 (Monday London open 1080)
USDTWD 28.675 (28.72)
USDCNY 1yr 6.3645 (6.3565)
USDPHP 43.25 (43.24)
USDIDR 8545 (8530)
USDINR 44.97 (44.96)
USDMYR 3.0165 (3.0075)
USDSGD 1.2314 (1.2303)
HSBC Global Research