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JGB TECHS

(Z1) Bearish Trend Condition

AUSSIE 10-YEAR TECHS

(Z1) Bearish Price Sequence

AUSSIE 3-YEAR TECHS

(Z1) Off Recent Highs

US 10YR FUTURE TECHS

(Z1)‌‌ Support Appears Exposed

Risk On Sees Most Asia EM FX Bid

ASIA FX

Risk on tone has been supported by a number of developments overnight. The PBOC injected funds to help alleviate the liquidity crunch, a senior Chinese diplomat said the relationship between the US and China should be put back on a more constructive track and in the US officials are said to have made progress towards a coronavirus relief bill. This saw the greenback recede while EM FX caught a bid.

  • CNH: Constructive risk tone has seen USD/CNH move lower as the yuan advances, the pair last 6.4659 – down around 82 pips. The bank fixed USD/CNY at 6.4736, another fix above sellside estimates for the eleventh straight session, bringing total misses in Feb to +33 pips (Jan +284 pips, Dec +133 pips)
  • SGD: Singapore dollar advances ahead of PMI data. The index is expected to rise to 50.9 from 50.5 which would show further improvement in the manufacturing sector.
  • TWD: The Taiex saw further gains as foreign investors are on track to be net buyers again. Elsewhere Taiwan has taken steps to join the CPTPP.
  • KRW: The won strengthened, the government are reportedly considering an extra budget to facilitate cash handouts to citizens and support for businesses impacted by the pandemic.
  • IDR: USD/IDR remained within a familiar range but bucked the trend of lower USD/Asia crosses, last trades +15 pips at 14,042. FinMin Indrawati informed that her ministry, Bank Indonesia and the financial services regulator have joint forces and are designing a policy package to boost financing for businesses.
  • MYR: The ringgit declined, markets await a government decision on whether to extend the current MCO/lockdown order beyond Feb. 4.
  • PHP: Peso saw some modest strength, Philippine President Duterte pledged to keep the economy afloat amid the coronavirus pandemic, and kept GDP forecasts unchanged at 7.5% for 2021.
  • THB: USD/THB oscillates around neutral levels, last changes hands at 29.98. The BoT's Business Sentiment Index deteriorated to 44.2 in Jan from 46.8, falling to the worst level since Jul 2020.