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FOREX: Yen Outperforms AUD, China/HK Equities Lower

FOREX
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As we approach the London/EU crossover, earlier trends in G10 FX are holding, with the BBDXY index up modestly, but with a risk off tone in terms of yen crosses. 

  • The USD BBDXY index was last just above 1261, still down modestly for the week. In the cross asset space, US equity futures are close to flat, while US yields are unchanged. The early impetus in yields was higher, but there was no follow through.
  • USD/JPY got to lows of 152.55 a little while ago (last near 152.70/75). This is lows back to early Wednesday trade (as US election results started filtering in). Earlier data showed firmer than expected household spending, but still negative in y/y terms.
  • We had fresh rhetoric on FX markets as well - warning on excessive moves in the short term. However, important local political member, Tamaki, who heads the DPP party, reiterated that the BoJ shouldn't act in the near term, while also noting Trump related policies may weaken yen.
  • Yen has outperformed on crosses, as China and Hong Kong equities have given back some of yesterday's gains. Major indices are still up for the week, but we await further stimulus details at the conclusion of the NPC. A press conference is to be held in Hong Kong at 4pm to discuss the raising of the ceiling on local government debt to replace hidden debt.
  • AUD/USD is back to 0.6650, off around 0.40%, NZD has fallen 0.30% to 0.6005/10. AUD/JPY is back to 101.55, nearly 100pips of recent highs.
  • Outside of NPC related headlines, we have central bank speak, including Bowman from the Fed. On the data front, in the US the U. of Mich Sentiment print is out. In Canada jobs data is due. Note tomorrow, Oct inflation figures print in China. 
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As we approach the London/EU crossover, earlier trends in G10 FX are holding, with the BBDXY index up modestly, but with a risk off tone in terms of yen crosses. 

  • The USD BBDXY index was last just above 1261, still down modestly for the week. In the cross asset space, US equity futures are close to flat, while US yields are unchanged. The early impetus in yields was higher, but there was no follow through.
  • USD/JPY got to lows of 152.55 a little while ago (last near 152.70/75). This is lows back to early Wednesday trade (as US election results started filtering in). Earlier data showed firmer than expected household spending, but still negative in y/y terms.
  • We had fresh rhetoric on FX markets as well - warning on excessive moves in the short term. However, important local political member, Tamaki, who heads the DPP party, reiterated that the BoJ shouldn't act in the near term, while also noting Trump related policies may weaken yen.
  • Yen has outperformed on crosses, as China and Hong Kong equities have given back some of yesterday's gains. Major indices are still up for the week, but we await further stimulus details at the conclusion of the NPC. A press conference is to be held in Hong Kong at 4pm to discuss the raising of the ceiling on local government debt to replace hidden debt.
  • AUD/USD is back to 0.6650, off around 0.40%, NZD has fallen 0.30% to 0.6005/10. AUD/JPY is back to 101.55, nearly 100pips of recent highs.
  • Outside of NPC related headlines, we have central bank speak, including Bowman from the Fed. On the data front, in the US the U. of Mich Sentiment print is out. In Canada jobs data is due. Note tomorrow, Oct inflation figures print in China.