Halister News

(Bloomberg) -- Regional currencies broadly sell off versus dollar after after Fed’s Yellen signaled monetary policy will slowly tighten; Aussie and won underperform while kiwi outperforms.

• People expect Fed to raise rates in Dec., and dollar strength reflects relative attractiveness of U.S. assets, says Hongsup Shin, head of fixed income at Truston Asset Management
  • NOTE: Yellen said Friday there are “plausible ways” that running the economy hot for a while could repair some damage caused to growth during the recession; see roundup of analyst reactions in Asia
• Asian bonds are broadly lower, following a Friday decline in the 10-year U.S. Treasury: Australia’s 10-year yield adds 5 bps to 2.31%, while same tenor yield in Korea climbs 7 bps to 1.62%
• NZD gains ahead of 3Q inflation data due tomorrow
  • Kiwi’s 2016 uptrend may be vulnerable if N.Z. inflation misses tomorrow; see analysis
• Aussie heads for first drop in four days
  • AUD/JPY sell flow has weighed on AUD and brought onto the radar some AUD/NZD sell, traders say
  • Nordea’s $22b flagship fund has started to buy sterling against Aussie and kiwi
• Yen declines as BOJ’s Kuroda reaffirms commitment to accommodative policy
  • The BOJ will continue easing until 2% inflation is stable, according to text of a speech to BOJ branch managers’ meeting
  • BOJ is said to consider reducing FY17 price growth forecast, Nikkei reported on Oct. 15
  • USD/JPY will be driven by dollar trends in the absence of Japanese events this week, CBA writes in note today
• China’s yuan heads to a seventh day of declines as PBOC sets fixing to weakest since Sept. 2010
  • PBOC fixing shows greater tolerance of USD/CNY strength: Natixis
  • China should keep prudent, neutral monetary environment, says PBOC-backed Financial News in a front-page commentary
• Korea’s won drops
  • Property-price fall may hit China’s financial stability, China Securities Journal reports
  • Korea mulls tighter mortgage rules to curb household debt: Korea Economic Daily
  • BOK officials to speak at financial conference in Seoul at 2pm local
• Singapore dollar drops for a second day
  • Sept. non-oil domestic exports fell 4.8% y/y vs est. drop 5.8%
• Baht weakens with regional peers after gaining in past two sessions
  • Cabinet will meet as scheduled tomorrow, with govt spokesman saying yesterday that national development efforts will continue
  • Morgan Stanley said in Oct. 16 note that it expects GDP growth of 2.9% for 2016 and 3.0% for 2017
• Indonesia’s rupiah falls
  • Exports may have increased 0.50% y/y in Sept. while imports climbed 4.23%, leaving a trade surplus of $589m, according to Bloomberg surveys before data due 11am local time
  • Indonesia’s first export growth in 2 yrs may cap USD/IDR; see analysis