Overnight Price Action
The USD gained ground against EM FX, but was mixed against the G10. AUDUSD opened at pre-FOMC levels of 0.934, but has been slowly grinding back up to 0.942, benefitting also from a better-than-expected Chinese flash PMI. EUR and JPY held on to post FOMC gains, and were little changed at 1.353 and 99.12 respectively. Most Asian currencies fell. IDR weakened sharply to 11,400, while the rest of Asia was only 0.1% to 0.3% lower. This is despite a new low in USDCNY fix to 6.1475.
China stocks opened higher after the long weekend holiday. Shenzhen index rose 1.7%, and Shanghai rose 0.8%. Hong Kong was closed in the morning due to tropical cyclone Usagi, but the stock market and banks are set to resume operations in the afternoon. Most other EM equity markets have partly reversed their gains post FOMC.
Asian rates were mixed, Indonesia rates rallied strongly, India and Korea rates sold off.
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Credit Suisse