HK wrap from G10 trader
Fridays risk off move continued in Asia from the outset as Noyer comments early in our session set the tone and sent EUR through 141.00. HSBC’s FLASH PMI for China came in soft and added to the aversion theme. Equity markets across the region are all bathed in red, ASX -1.7%, Kospi -2.0%, Shanghai -2.0 % and S&P futures -0.5% giving further support to the USD though Gold and NZD are two noted out performers. The later getting support from quake related repatriation flows from insurance companies apparently. Flows here have relatively light considering the moves, a few spec accounts selling EUR and AUD but not much else of note. The USD remains near its highs as the London open approaches and it remains to be seen if the usual short squeeze occurs
FX Flow
Overnight flow has seen a good amount of selling interest in EURUSD from the leveraged community, while macro bought AUDUSD and systems sold. Lev accounts sold USDSGD, bought USDMYR and we were better sellers of USDCNY and buyers of USDKRW.
London open has seen sellers of EURUSD
USD/ASIA run
* All levels are mid rates in the 1 month tenor (except SGD which is spot and CNY which is 1yr)
USDKRW 1101 (Friday London open 1085)
USDTWD 28.90 (28.75)
USDCNY 1yr 6.3910 (6.3625)
USDPHP 43.45 (43.20)
USDIDR 8620 (8565)
USDINR 45.47 (45.10)
USDMYR 3.0605 (3.0155)
USDSGD 1.2480 (1.2355)
HSBC Global Research