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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
ASIA FX
Asian currencies have continued to falter as today's session has progressed. Even CNH, which was resilient earlier, has fallen, with USD/CNH now above 6.8500. The Korean won has lost over 1%, while MYR and THB are off by 0.90% at this stage. The ADXY is now back below its simple 50-day MA for the first time since Nov last year, see the first chart below.
- The combination of the higher for longer threat from the Fed is benefiting broader USD sentiment, while the China re-opening theme has run out of some momentum, particularly in the equity space. US-China tensions haven't helped this backdrop either. Regional central banks have also likely had one eye on FX competitiveness given a still modest export growth backdrop.
- For the ADXY the simple 200-day MA sits lower at 100.67, versus current levels at 101.64. The 20-day sits above at 102.82.
Fig 1: J.P. Morgan ADXY Versus 50-Day MA
Source: J.P. Morgan, MNI - Market News/Bloomberg
- The second chart below plots the deviation in USD/Asia pairs from their respective 50-day MAs. USD/KRW and USD/THB are the firmest in terms of current deviation, followed by USD/INR and USD/MYR.
- At the other end of the spectrum, IDR and TWD are proving to be more resilient. PHP, CNH and SGD currently sit relatively close to their respective 50-day MAs.
- This resilience may prove difficult to sustain if the headwinds outlined above persist though.
Fig 2: USD/Asia FX Pairs -Deviation From 50-day MA
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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