Halister News

(Bloomberg) -- Yen and kiwi lead a decline in the region as the dollar rebounds ahead of the U.S. presidential debate next week. Offshore yuan advances amid liquidity concerns.

• Risk assets and carry-trade sensitive currencies may have gotten ahead of themselves and start to unwind gradually going into the U.S. election, says Stephen Innes, senior Asia Pacific FX trader at Oanda
  • Investors may buy USTs, USD, gold or yen going into election
  • Clinton & Trump will have TV debate on Sept. 26
• Australia 10-year govt. bond yield and Japan’s benchmark slip with UST, as Fed indicate a slower pace of rate increase in 2017
  • Yield curves are likely to flatten in Japan and U.S., led by longer-tenor rates, says Eiji Dohke, chief bond strategist at SBI Securities
  • 20-yr JGB yield could fall below 0.3% next week
  • SMBC Nikko Securities sees a low possibility that BOJ will limit yield declines beyond 10-yr zone
• Yen declines as Japan returns from holiday, with leveraged funds buying USD/JPY, according to an FX trader
  • Goldman upholds long-held view for yen declines; says policy shift by BOJ addresses concerns about scarcity of JGBs, thus increasing sustainability of continued monetary accommodation
  • Chief Cabinet Secretary Suga says FX market moves have been very sensitive, and will make necessary response if situation continues
  • Magnitude 6.5 quake reported 220km from Tokyo; no tsunami threat
• Kiwi drops for a second day, as macro funds, which bought AUD/NZD yesterday during RBA Lowe’s parliamentary speech, continue purchases today, according to a trader
• Aussie falls after gaining for four days
  • With FOMC and BOJ supportive of risk, BNP Paribas expects AUD and NZD to outperform in near-term, according to note yday
  • Click here for forecasts for Australia’s benchmark central bank rate; next RBA meeting Oct. 4
• Offshore yuan advances, with USD/CNH seeing broad-based selling in early session partly driven by banks turning to spot market to reduce CNH funding needs, according to a trader
  • Concern over liquidity tightening by month end is kicking in, according to Mizuho Bank
  • China said to allow trading of credit default swaps in interbank market as bad debt rises
  • Yuan will stay stable before and after its SDR inclusion on Oct. 1 as China needs to establish credibility: CICC
• Won and currencies in Southeast Asia decline
• Won drops after a 1.5% rally yesterday
  • N. Korea threatens to strike Guam, Seoul if U.S. lets bombers fly over Korea
  • JPY/KRW likely to be most volatile Asia FX cross on U.S. election day, Standard Chartered Bank writes in note today
• Rupiah drops, snapping six-day rally, after BI cut its benchmark interest rate yesterday
  • BI lowered policy rate by 25 bps to 5.00%; Governor Martowardojo said central bank sees 2017 GDP growth at 5.1%-5.5% y/y and easing may continue till end 2016
  • UOB lowers its 2017 growth est. to 5.2% from 5.5% previously, with weaker growth momentum ahead
• Peso falls 0.2%, set for fourth consecutive week of decline
  • USD/PHP MACD remains bullishly above zero and signal line, eyeing test of resistance at 48.005, year-to-date high
  • BSP held rates yesterday. They will probably wait until Q2 2017 to hike its policy rate, as headline inflation is seen drifting higher in coming months: Goldman Sachs