Halister News

(Bloomberg) -- Most Asian currencies gain as the hunt for yield continues post-Brexit. Japan’s yen and South Korea’s won are the exceptions, declining in poor liquidity amid U.S. holidays. Aussie dollar is little change, awaiting election results.

• USD/Asians are heavy today with inflows into Asia because of relatively better yields while poor spot liquidity amplify moves, Christopher Wong, senior FX analyst at Maybank says in an interview
  • Cautions against false breaks lower in USD/Asia given holidays this week in Indonesia, Malaysia, India, Singapore and U.S.
• Dollar index steady, following 0.5% losses on July 1
  • MSCI Asia Pacific Index is set to rise for 4th day; Brent oil prices is little changed following 1.4% rally on last Friday
• Australian dollar recoups early losses to hold steady as early vote count shows no clear winner at national elections; see Election Wrap: Fiscal ‘Paralysis’ No Matter Who Wins
  • Fitch says close Australia vote could mean different fiscal outlook
  • Moody’s says short-lived political uncertainty would have limited credit implications for Australia
  • May building approvals fell 5.2% m/m; est 3.5% drop; ANZ June job advertisements rise 0.5% m/m; June Melbourne Inst. inflation gauge rises 0.6% m/m
• New Zealand dollar steady after 0.6% gain on last Friday
  • NZ Treasury says Brexit likely to have limited economic impact
  • Kiwi-Aussie dollar parity a realistic possibility, according to ANZ
• South Korea’s won falls, set to snap fourth day of gains
  • South Korea 2Q foreign direct investment inflows rise 18.1% y/y
• Onshore yuan lower, reaching weakest since Dec. 2010 even as PBOC sets yuan fixing stronger at 6.6472 vs 6.6496 prev.
  • Offshore yuan little changed at 6.6759 after strengthening as much as 0.18% to 6.6661 earlier
  • USD/CNH bought by Asia-based leverage accounts ahead of CNY fixing, according to FX traders in Asia
  • Yuan increasingly being micro-managed by PBOC on growth risks: Natixis
  • Cross-border yuan flow in recent months could have masked the true level of outflow pressure in China, according to Goldman Sachs
  • UBS revises yuan end-2017 forecast to 7-7.2 per USD vs 7 earlier amid renewed depreciation pressure in aftermath of U.K. referendum
• Malaysia’s ringgit is set to rise for fifth day
  • Malaysia’s 2-month foreign selloff in stocks approaching end, according to MIDF
• Japanese yen falls following 0.7% gain on July 1
  • BOJ may cut CPI outlook for this fiscal year, Yomiuri reported on July 2
  • Prime Minister Abe’s Cabinet approval rating falls to 45.8%, Sankei/FNN poll shows
• Philippine peso is set to rise for second day
  • Philippines seeks to widen 2016 deficit to 3% of GDP, Finance Secretary Dominguez says