Halister News

(Bloomberg) -- Yen extends rally for a second day, rising to the highest since Oct 2014. Yuan advances after PBOC raises fixing by the most in almost 11 years, keeping pace with its Japanese counterpart post BOJ’s decision yesterday to hold off on more stimulus.

• PBOC’s strengthening of the yuan against the dollar will help keep it “stable” against a basket of currencies: Gao Qi, EM Asia currency strategist at Scotiabank
  • Momentum of strong Asian currencies is led by yen, which is trading around 107, the highest level vs dollar since Oct 2014: Gao
  • Yen strength could continue and test 105, which was last reached in Oct. 2014: Gao
  • NOTE: Japanese markets are closed for public holiday, with thinner liquidity seen for yen trading, according to trader
• Taiwan’s preliminary 1Q GDP dropped 0.84% on year vs median estimate of 0.65% drop
  • Given soft external demand and uncertainties about China’s economy recovery, Taiwanese central bank may cut rates in 2Q, says Claire Huang, HK-based economist at Societe Generale
• Thailand’s baht gains after manufacturing production rises 1.8% on year in March, most since July 2015; median estimate was for 1.6% decline;
  • Other Southeast Asian currencies fall, including peso & rupiah; Bank Indonesia sees 2016 current-account deficit at 2.51% of GDP
• Won declines after South Korea says March industrial output fell 1.5% on year vs median estimate of a 0.3% gain
  • BOK will continue its accommodative policy stance as recovery pace of economy is “very gradual” and inflationary pressure isn’t large: central bank quarterly monetary policy report submitted to parliament
• Australia’s PPI rose 1.2% from year earlier in 1Q, slowest gain since 2Q 2015
• New Zealand’s building permits dropped 9.8% from previous month in March, biggest decline since September 2014
  • Leveraged account buying helping to lift NZD/USD through option offers around 0.6960 strikes, according to an Asia-based FX trader
• U.S. Treasury futures rise to 130-01+ from 129-30+; data today will probably show U.S. personal spending rose 0.2% from previous month in March, most since November, according to median estimate of economists in Bloomberg survey