Forex - Asia Close Highlights

 08:51 (GMT) 15 Nov

  [Forex Highlights]

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Asia Close Highlights (0100-VBBG-C01)

15 November 2017

Regional Backdrop:

Asian currencies strengthened, as global equity markets corrected and commodities dropped on higher-than-expected US inventories. Japan's GDP growth was below expected, despite a 7th consecutive quarter of expansion. Markets await US CPI and retail sales data out later. Gains were led by KRW (+0.51%), MYR (+0.29%), PHP (+0.16%). THB, TWD, INR and IDR also were up 0.07-0.11%. CNY and CNH were relatively more stable as it relatively underperformed.

USD/CNH rebounded slightly during Wednesday Asian morning hours after coming down for much of the previous day. USD/CNH opened at 6.6389 and reached a high of 6.6410, last seen at 6.6365 in horizontal movement. PBOC fixed USD/CNY mid-point at 6.6263 vs. previous close of 6.6366. The onshore pair gapped lower, opening at 6.6310 and went down to 6.6300 at last look. 1Y NDFs followed spot movements and came down to 6.7865 at last look. A 50pips gap between CNY/CNH has opened up.

USD/SGD broke 1.3600 handle overnight and hovered around 1.3590 as Asian session started on Wednesday, as the dollar index was lower due to gains in euro and sterling and continuing concerns regarding US tax reform. The currency pair then dipped to 1.3575 as London session started.

USD/IDR onshore spot gapped slightly lower at 13548 on Wednesday after last close at 13554 and slid further to a low of 13533 in early trading. A weak US dollar on EUR and GBP strength underpinned.

USD/INR onshore spot saw a firm opening at 65.4300 on Wednesday vs. last close of 65.4150 and slid to 65.3000 in early trading as the dollar was weak on overnight gains in EUR and GBP. The downside however remained supported as SENSEX slid to a 3-week low, last seen down by 0.3%.

Market Psychology

USD/CNH - For USD/CNH and USD/CNY, expect some stability around the 6.6200-6.6500 for now. If the resistance level of 6.6500 is broken, we see USD/CNH moving close to 6.6900.

USD/SGD - For USD/SGD, break below 1.3600 level turns focus to the downside, the pair likely to retest the support at 1.3570, eyes on the next support at 1.3555.

USD/IDR - . Focus on the Bank Indonesia decision due on Thursday, and we do not expect to see sharp moves ahead of that. Strong support is only seen at 13460.

USD/INR - Focus remains on the upside, but a series of strong resistances ahead likely to cap below the 66 handle.

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