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A subdued affair in Asia with Japanese........>

FOREX
FOREX: A subdued affair in Asia with Japanese markets on holiday for "Coming of
Age" day. The Korean won was a mover, USD/KRW jumped after a sharp drop to
1,058.80 is thought to have caused intervention from the FX authority. The rate
spiked from around 3-year lows at 1,058.80 to highs of 1,069.80 before dropping
back slightly to 1,066.50 last. MNI sources note some suspected stop loss
selling on the break of 1,060 was the catalyst for the suspected intervention.
- AUD/USD dropped, last down 23 pips at 0.7841, Aussie dollar is on the back
foot for several reasons, CFTC data on Friday showed that speculators increased
their short position to 20k contracts - the largest net short position in 2
years. Also forecasts from the Australian government released today that
forecast a 20% drop in the price of iron ore in 2018 due to global supply
increases and weaker demand from key industrial partners such as China.
- Elsewhere the PBOC fixed USD/CNY at 6.4832, the highest since May 2016,
GBP/USD initially rose, but has weakened heading into Europe ahead of the
cabinet reshuffle today.

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