Halister News

(Bloomberg) -- Most Asian currencies strengthen, led by KRW, NZD and MYR, after China manufacturing PMI jumps to 2-year high.

• Yen weakens after BOJ maintains policy; follow rolling coverage here
• RBA due to announce cash rate target at 2:30pm Sydney time
• Bonds in region steady
• Onshore yuan heads for first 2-day gain vs dollar in 6 weeks
  • Offshore yuan pared loss after data but has since weakened 0.1%
  • China Oct. manufacturing PMI at 51.2 vs 50.3 est. and 50.4 prior; non-manufacturing PMI beats September and Caixin manufacturing PMI tops est.
  • Strong PMI reading supportive of Asian regional trading partner currencies, particularly AUD, KRW and TWD, says RBS
  • PMI may lift China 10-year govt bond yield to 3%: Commerzbank
  • New export orders PMI dropped to 49.2, signaling weak global demand; Natixis says PBOC may keep weak yuan bias to counter that soft demand
• Yen weakens 0.1% to 104.94 per dollar as BOJ refrains from easing
  • BOJ says risks to economic activity and prices are skewed to downside; cuts inflation forecasts
  • November bond purchase plan may get more attention for signs of reduction in buying of super-long term debt; plan to be released at 5pm Tokyo time
  • AUD/JPY could retreat to 78.074 level near term as pair fails to breach 200-DMA resistance: Analysis
• Aussie gains for third day before RBA decision
  • RBA will leave its benchmark rate unchanged, according to 22 of 28 economists surveyed by Bloomberg; remainder expect 25bps cut
  • BNP Paribas expects RBA to send somewhat dovish message and avoid providing catalyst for further AUD gains
• Won strengthens as much as 0.5% vs dollar
  • S. Korea CPI +1.3% y/y in October, highest since February; est. +1.1%
  • October exports -3.2% y/y vs -3.1% est., imports -5.4% vs -4.4% est.
  • Prosecutors detain Choi Soon-sil, who is at center of an influence-peddling scandal involving President Park: Yonhap News
  • Korean scandal a blow for president, but not economy: Capital Economics
• Ringgit swings to a gain after China manufacturing PMI
  • Malaysia likely to report weaker trade number this week, which will maintain pressure on MYR, CIMB writes in note; trade data due Nov. 4
• Rupiah advances for a second day
  • Indonesia CPI est. +3.3% y/y in October vs +3.07% in September, according to Bloomberg survey before data today; no time specified for data release
  • USD/IDR may be capped at 50-DMA if CPI quickens: Analysis

(Bloomberg) -- The Reserve Bank of Australia will announce its cash rate target at 2.30pm local time. The central bank is estimated to keep the benchmark policy rate unchanged at 1.50%.

• PREVIEW: RBA to stay the course, avoid stoking Aussie gains; see analysis
• Click here for RBA page

Economic Release Details: {JFYFCPI1 Index ECOD} --RUSSELL WARD

Economic Release Details: {BOJDPBAL Index ECOD} --JUNKO HAYASHI

--BRETT MILLER

--BRETT MILLER

(Bloomberg) -- With BOJ widely expected to stay on hold today, the central bank’s bond purchase plan for November may gain more attention as market participants look for signs of further reduced buying of super-long term debt.

• BOJ will release bond purchase plan at 5pm Tokyo time
• On Sept. 30, BOJ cut planned purchases for Japanese govt bonds by 10b yen per operation in maturities over 25 years and 10-25 years
  • As a result, the central bank last month bought the least in those tenors since October 2014, purchasing 552.7b yen for maturities of more than 25 years and 954.1b yen for 10-25 years
• BOJ Governor Kuroda said on Oct. 27 it wouldn’t be strange for super-long-term yields to rise a bit and he doesn’t see immediate need to lower the yields
• Market has priced in a reduction of about 10b yen for both maturities of over 25 years and in 10-25 years sector, Kazuhiko Sano, chief bond strategist at Tokai Tokyo Securities, writes in note today
  • If there is no cut in November purchases, market will react positively