Overnight Price Action
Overnight Wall Street rallies helped lift Asian markets. Asian equities opened higher and the USD weakened as the market adjusted positions ahead of Fed Chairman Bernanke’s testimony and the FOMC meeting next week. The Nikkei rose 2.5%, Thailand rallied 3.3% and the Philippines rose 3.1%. The THB outperformed in EM Asian FX, strengthening to 30.5. USDINR opened lower at 57.7, having retreated 1.1% from the high earlier this week. USDIDR one-month NDF continued to edge lower to 10066. Meanwhile, the PBoC kept the USDCNY fix broadly stable for a second day at 6.1607. In the G10 space, AUD has settled around the NY close of 0.959 after an attempt to rally earlier. EUR failed to hold the NY high of 1.3380, inching lower to 1.3350. USDJPY also retraced to 94.90 from a day high of 95.80. JGB yields are between 0.3bp to 1bp lower. Swap yields are mostly lower across Asia and curves flattened.
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Credit Suisse