Citi Break Down Post-FOMC Flows In Asia-Pac Hours

Citi note that “USD weakness continued during Asia session downtrodden by the dovish Fed and renewed weakness in bank stocks. Our platform flows showed a distinct split in USD, with leveraged names still heavy selling, while other account types bought. Similarly in JPY, leveraged names bought while other sold. The team has interbank flows clocked at +35% versus normal.”

• “High-beta FX rallied firmly, led by AUD and NZD. In USD/Asia, our sales teams saw market participants throwing in the towel on longs and while KRW outperformed with banks and leveraged names seen net selling USD/KRW on our platform.”
• “Importantly, regional stock inflows everywhere are light. In options, our sales desks are seeing interest in new in bullish KRW, INR, CNH and JPY expressions via options.”
• “Falling U.S. rates mean USD’’s yield advantage is slowly unwinding, which has our spot desk in Asia turning attention to Europe and see value in positioning for EUR/ASIA higher as other yield differentials compress.”