Overnight Price Action
S&P futures are down slightly, the Nikkei is up 0.5%, the HSI has risen 0.2%, Kospi has rallied 1.4%, but Shanghai is down 0.5%. Better than expected GDP growth of 7.5%yoy in the Philippines powered a 2.7% rally in its equity market.
The USD is essentially flat against the EUR and JPY at 1.3339 and 97.55 respectively, but AUDUSD has risen a bit to 0.8967 in response to better than expected capex data. In contrast, USDAsia is generally lower. Equity flows and another huge current account print has pushed USDKRW down to 1109.34 where it met intervention from the Bank of Korea at 1109. USDINR gapped lower to 67.2550 from its overnight high of 68.85 in response to the government’s announcement of swap lines for India’s oil companies. This is essentially a roundabout form of intervention. Similarly, USDMYR has fallen to 3.3205 with the government announcing curtailment of import-intensive infrastructure projects.
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Credit Suisse