1) Overnight Asia Wrap
The main forex pairs were largely tied to fairly muted ranges in Asian trading, with little to break from the recent ranges, as traders await the speech from Bernanke on Friday. USDJPY was tied to a narrow 76.85 to 77.15 range as apparent offers from exporters around the 77.25/30 handle was capping upside. However, with the omnipresent threat of Japanese intervention, there seems to be little ahead of Bernanke to see a test lower. EURUSD was also muted, stuck in a tight 25 pip range. The pair traded a range of 1.4390 – 1.4415, with little fresh news to push prices in either direction. The AUD was modestly lower against the greenback, giving up ground as Gold continues to slide (now trading $1735). The pair was last trading at 1.0442, off the lows at 1.0432, but shy of the early 1.0475 highs.
2) Orderbook & Flow
EURUSD stops below 1.4380 with offers above all the way to 1.4500.
EURGBP offers above around the 0.8880 handle.
AUDUSD seeing topside offers collection around 1.0500 handle.
USDJPY rather sparse on the topside with stops around the 76.80 and 76.20 handles.
Saw buying of USD vs Asia in particular against JPY, IDR & KRW.
In G10 we were also better USD buyers.
3) USD/Asia Run
USDKRW 1086.0 (Wednesday open 1084.0)
USDINR 46. 18 (45.96)
USDPHP 42.40 (42.33)
USDCNY1y 6.2910 (6.2845)
USDIDR 8575 (8565)
USDMYR 2.9845 (2.9795)
USDTWD 29.97 (28.92)
USDSGD 1.2100 (1.2050)
4) Opening Levels
EUR 1.4412
GBP 1.6371
JPY 77.05
CHF 0.7954
WTI 85.1
Brent 110.2
XAU 1739.8
Silver 39.65
X-Over 719
Greece 2225
Porutgal 1037
Ireland 844
Spain 376
Italy 376
UK 10y 2.47
Ger 10y 2.17
US 10y 2.27
Bund 134.54
Spain over bunds 280
Italy over bunds 284
BeBanks Index 75.09
3m Eur Xccy -79.0
HSBC Global Research