HALISTER1: INSIDE ASIA: Currencies Jump as Dollar Drops on Doubts About Fed

INSIDE ASIA: Currencies Jump as Dollar Drops on Doubts About Fed

(Bloomberg) -- Asian currencies advance across the board, led by Korean won and Malaysian ringgit, as greenback retreats amid renewed doubts about near-term hikes from the Fed.
  • Bloomberg’s dollar index has now given back all gains from last week’s strong jobs report and is testing Aug. lows; a surprise drop in U.S. worker productivity has added pressure
  • EM currency carry trades could still be the theme to play, given accommodative monetary conditions, says Maybank
  • Korean won jumps 1.2%, setting 14-month high ahead of tomorrow’s BOK meeting
    • FX authorities are closely monitoring market and may take stabilizing measures if there’s excess volatility or herd-like behavior, says a BOK official
    • Won’s break below the June 2015 low near 1,100 may set up a test of April 2015 low near 1,065, BBH wrote in a note yesterday; spot now at 1,092
    • Yield on 10-year note declines 4 bps to 1.39%, according to Korea Exchange data
  • Yuan gains 0.2%
    • Given dollar weakness overnight, USD/CNY is to see some pressure today, and earlier gains in CNH are in line with Asian peers’ strength, says Maybank
    • Yield on China’s 10-year sovereign bond is down 1 bp at 2.71%, near lowest since January 2009
    • Abundant liquidity due to increasing trade surplus, maturing central bank notes and OMO injection should keep bond market supported, SWS Research writes
  • Aussie rises for a third day as local sovereigns rally
    • Outgoing RBA Gov. Stevens says it will take more than rate cuts to spur stronger growth, and fiscal side must do its part
    • June home-loan approvals rose 1.2% m/m vs est 2.3%
  • Yen climbs for a second day; Nikkei 225 reverses early losses
    • BOJ may consider setting a bond-purchase range of 70t-90t yen per year instead of current 80t yen in policy review next month, Sankei reports
    • Without major data or news to trade on during summer holiday, USD/JPY is unlikely to have a clear direction in near term, says Sumitomo Mitsui Banking Corp.
  • Baht set for third day of gains as overseas investors continue to buy local equities
    • Global investors bought net $151m of Thai equities yesterday, adding to Aug. 8 inflows that were biggest in four months: exchange data
    • Second-quarter GDP will probably continue to show q/q improvement, Maybank Kim Eng Securities said in note yesterday; sees 3.5% y/y growth, up from 3.2% in 1Q
  • Ringgit strengthens past 4.0 per dollar as Brent crude climbs above $45/bbl
    • Bank Negara Malaysia to leave rates unchanged at 3.00% in 2016 and 2017, according median forecast in Bloomberg survey
  • Philippine peso strengthens
    • June exports fell 11.4% y/y vs est. drop 12.5%
    • Bangko Sentral ng Pilipinas is forecast to leave its overnight borrowing rate at 3.00% at its meeting tomorrow, according to all economists in Bloomberg survey
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: INSIDE G-10: USD Sinks Versus Majors, NZD Gains Before RBNZ

INSIDE G-10: USD Sinks Versus Majors, NZD Gains Before RBNZ

(Bloomberg) -- USD encountered broad-based selling amid thin liquidity as futures market pricing suggests Fed won’t raise rates this year.
  • USD/JPY -0.63% to 101.24 vs 101.16-101.95 range
    • A sudden drop in USD/JPY sparked leveraged-account selling of dollars vs major currencies, trader says
    • “Markets don’t sense any urgency for the Fed to move,” says Sean Callow at Westpac. “It’s definitely a headwind for USD”
    • Fed’s Sept. 20-21 meeting may “prove to be the last shot” for rate hike through 2017, says MFR
    • Japan’s economy will expand 0.8% in 2Q, Bloomberg survey
    • June core machine orders rise 8.3% m/m vs est. +3.2%
  • NZD/USD +0.68% to 0.7215 vs 0.7159-0.7223 range
    • Kiwi challenges 1-week high ahead of tomorrow’s RBNZ decision, with investors focused on guidance; analysis here
  • AUD/USD +0.34% to 0.7699 vs 0.7662-0.7707 range
    • RBA Stevens says monetary policy alone won’t deliver strong growth
    • Buy stop-losses seen above 3-month high at 0.7719: trader
  • BBDXY -0.41% at 1,177.39
  • 10-yr Treasury yield down 1 bp to 1.533%
  • GBP/USD +0.52% to 1.3071 vs 1.2995-1.3090 range
    • BOE failed to buy enough gilts within its QE program
  • EUR/USD +0.30% at 1.1150 vs 1.1113-1.1156 range
    • Options expiring include 1.1200 strikes for EUR648m
  • USD/CAD -0.39% to 1.3068 vs 1.3052-1.3124 range
    • Options expiring include 1.3065 strikes for $410m
  • WTI, Brent crude futures mixed; gold, copper both gain
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Sean Callow (Westpac Banking Corp)

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HALISTER1: INDIA RATINGS: Angelique, Birla Cut; ALD Automotive Raised

INDIA RATINGS: Angelique, Birla Cut; ALD Automotive Raised

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.
  • To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery
DOWNGRADES
  • Angelique International
    • Long-term loan facilities cut to BBB+ from A- at Crisil
    • Cites higher-than-expected stretch in working capital cycle
  • Bimla Maru Fashions
    • LT loan facilities cut to C from BB- at Crisil
    • Cites delays in repayment of business loans
  • Birla Corp.
    • LT bank facilities cut to AA from AA+ at Care; NCDs also cut to AA from AA+
    • Cites impact of acquisition of entire equity in Reliance Cement Co.
UPGRADES
  • ALD Automotive
    • LT bank lines raised to AAA (SO) from AA+ (SO) at ICRA
    • Cites credit enhancement by way of SocGen guarantee
  • Bharat Vanijya Eastern
    • LT loan facilities raised to BBB from BBB- at Crisil
    • Expects financial-risk profile to remain healthy
  • Keerthi Industries
    • LT bank facilities raised to BBB- from BB- at Care
    • Cites healthy growth in total operating income, improvement in profitability margins
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BCORP IN (Birla Corp Ltd)
7566308Z IN (Angelique International Ltd)
9155931Z IN (Bimla Maru Fashions Pvt Ltd)
KRIL IN (Keerthi Industries Ltd)

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HALISTER1: USD/KRW May Consolidate After BOK As Momentum Oversold: Analysis

USD/KRW May Consolidate After BOK As Momentum Oversold: Analysis

(Bloomberg) -- USD/KRW may consolidate near term even if BOK refrains from dovish signals at its central bank meeting tomorrow, as momentum studies suggest the pair is oversold, Bloomberg strategist David Finnerty writes.
  • FX pair currently down 1.1% to 1,094.15, breaching support at 1,098.64, 61.8% Fibonacci retracement of July 2014 to Feb. 2016 rally
  • Slow stochastics are in oversold territory with a %D reading of 10, indicating pair may need to consolidate while oversold conditions are worked off
  • Bollinger band studies similarly indicate pair’s downside may be stretched as they test lower boundary
  • USD may find broad support next week if FOMC minutes sound more hawkish than expected or U.S. CPI beats forecasts
  • Bank of Korea is expected to leave its 7-day repo rate unchanged at 1.25%, according to all 19 economists in Bloomberg survey; decision due tomorrow
  • NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
1206Z KS (Bank of Korea/The)

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HALISTER1: SINGAPORE DAYBOOK: Lockheed F-35s, Nomura on Banks’ Tier 2 Bonds

SINGAPORE DAYBOOK: Lockheed F-35s, Nomura on Banks’ Tier 2 Bonds

Alert: HALISTER1
Source: BN (Bloomberg News)

Tickers
LMT US (Lockheed Martin Corp)
OZL AU (OZ Minerals Ltd)

People
Andrew Cole (OZ Minerals Ltd)
Axel Theis (Allianz SE)
Fan Cheuk Wan (HSBC Holdings PLC)
Mark Matthews (Julius Baer Group Ltd)

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UUID: 7947283