Halister News

(Bloomberg) -- Majority of currencies in region decline, led by ringgit and yen ahead of central bank meetings in U.S. and Japan this week.

• Dollar Index little changed following 0.5% gain Friday; MSCI Asia Pacific Index rises and Brent crude extends losses
• Asian currencies drop as investors consider if Fed will sound more hawkish this week, Rabobank head of financial markets research Michael Every says
  • Weekend news of another attack in Europe and Donald Trump implying U.S. may pull out of WTO if he is elected also pressure Asian exporters and currencies given possible impact on globalization
• FOMC rate decision Wednesday 2pm EDT; BOJ statement July 29
• Yen extends declines on expectations of more BOJ easing at July 28-29 meeting
  • 78% of analysts surveyed by Bloomberg forecast BOJ will ease policy
  • Exports fall for ninth straight month in June, down 7.4% y/y vs -11.3% est.; imports drop 18.8% vs -20.0% est., down 17th month in a row; surplus 692.8b yen vs est. 474.4b yen
  • Japanese banks seen buying USD/JPY through Friday’s 106.40 high, according to an Asia-based FX trader
  • USD/JPY could rally toward 107.49, July 21 high, on expectations of BOJ easing: SMBC
  • Govt maintained economic assessment for July, saying economy is on moderate recovery though weakness seen recently, Cabinet Office says
• Yuan steady after PBOC weakens yuan daily reference rate most since July 6
  • China will keep improving FX rate system based on market supply and demand and with reference to basket of currencies, PBOC Governor Zhou says statement after weekend G-20 meeting in Chengdu
  • Deputy Governor Chen says China will work hard to stabilize yuan vs basket
  • PBOC injects 150b yuan with 7-day reverse repos
  • PBOC may be preparing for South Korean won’s inclusion in CFETS basket by adjusting RMB index higher last week following KRW’s recent strength, according to Commerzbank
• Malaysia’s ringgit falls for sixth day, heading for longest losing streak in nine months, with WTI crude oil futures near lowest since May 11
  • Malaysia foreign fund inflows show signs of receding, according to MIDF
• Aussie and Australian bonds rise
  • Australia 2Q CPI data due July 27; median est. +1.1% y/y vs +1.3% in 1Q
  • Australian total FX turnover rose 6% to $134.8b in April from $127.6b in Oct.
• New Zealand dollar falls as kiwi dealers target sell-stops amid broad dollar strength, Asia-based trader says
• South Korea’s won snaps 2-day advance
  • S. Korean & Chinese finance ministers held bilateral meeting at G-20; agree to show commitment to prevent trade protectionism
  • S. Korea 2Q preliminary GDP due tomorrow; median est. +3.0% y/y vs +2.8% in 1Q
• Singapore dollar falls for second day, approaching one-month low
  • USD/SGD buying led by global macro funds
  • Singapore June CPI due at 1pm local time; median est. is -1.1% y/y, which would be 20th month negative