Halister News

(Bloomberg) -- Asian currencies rise as dollar weakens for second day with data overnight pointing to weakness in U.S. manufacturing; onshore yuan pares gains after eyeing first daily gain this month.

• Treasury yields declined after warning by Fed’s Fischer on running a high-pressure economy countered Yellen speech, Rabobank’s head of Asia-Pacific financial markets research Michael Every says
  • U.S. 10-year Treasury yield fell 3 bps to 1.77% overnight
• New Zealand 10-year govt bond yield rises 7 bps to 2.63% after better than expected inflation data; 10-year Australia govt bond yield rising for third day, up 3 bps to 2.34%
• Measure of daily portfolio flows to emerging markets fell sharply over past week: Institute of International Finance
• Aussie rises for fifth day, at 2-week high
  • RBA Governor Lower says central bank has to guard against fall in inflation expectations; minutes of Oct. 4 meeting released today; Australia’s growth prospects look reasonable
  • Underlying 3Q CPI of 0.3% or lower will trigger an RBA rate cut at Nov. meeting, CBA writes in note today; CPI data due Nov. 26; 2Q was +1.0% y/y
• N.Z. 3Q CPI +0.2% y/y & q/q vs est. 0.1% & 0.0%; kiwi jumped sharply before data release; holds gains, up 0.7% at 0.7182 vs USD
  • RBNZ Nov. rate-cut odds fall to 79% vs 84% yesterday
  • 2-year IRS jumps 5 bps, most since July, to 2.125%
  • Dealers still mulling why NZD/USD spiked before 3Q CPI, trader says
• Yen gaining for second day, now at 103.85 per dollar
  • USD/JPY has retreated to 103.50-104.50 range as top side was heavy; may consolidate this week without fresh impetus: Sumitomo Mitsui Banking
  • Govt plans to announce revision to GDP figures at year- end
• Onshore yuan little changed after edging higher earlier; hasn’t strengthened vs USD on daily basis since Sept. 29; PBOC strengthens CNY fixing by 0.11%
  • Offshore yuan up 0.03%, in line for only second daily gain since end-Sept.
  • Some investors trimmed USD/CNH exposure ahead of fixing, tracking broad USD weakness: traders; China 3Q GDP due tomorrow, median est. is 6.7% growth, same as 1Q and 2Q
  • China Sept. outbound investment 106.3b yuan, +56.9% y/y
• Philippines President Duterte starts visit to China
  • Duterte looks for export boost in talks with Xi: Chart
  • Peso edges higher after two days of losses
• Won outperforms
  • S. Korea’s deputy finance minister said yesterday economy should achieve 2.8% growth this year, even with negative impact of Samsung Galaxy Note 7
• Singapore-U.S. dollar curve may widen on dovish MAS: Charts