Halister News

(Bloomberg) -- Mixed bag for region’s currencies, with Korean won and Malaysian ringgit leading gains while Aussie and kiwi give up early advance and now lead declines.

• Yuan also falls, with CNY heading for its biggest quarterly loss since 1994, when official and mkt rates were unified
• Yen heading for monthly gain of 7.7%, most since Oct. 2008; eyes quarterly increase of 9.5%, biggest since 4Q 2008
• Recent yuan moves suggests China is resuming gradual yuan depreciation path, which will help anchor Asian currencies, says Brown Brothers Harriman currency strategist Masashi Murata
  • Risk aversion easing as expectations for Fed hike are pushed back; Asian currencies likely steady next week, at least until U.S non-farm payroll data
• Dollar Index edges higher after two days of losses, heads for 1.3% quarterly gain
• Bloomberg JPMorgan Asia Dollar Index in line for 1.6% quarterly drop, which would be biggest since 3Q last year
• MSCI Asia Pacific Index rises 1.1% after 1.8% gain yday; Brent crude falls 0.9%, set to snap two-day rise
• South Korean won leads gains, rising 0.6% following 1.0% gains on both Tuesday and Wednesday; heading for 3.3% increase in June, but a quarterly loss of 0.9%
  • S. Korean industrial production rose 4.3% y/y in May vs +0.3% est.; biggest increase since Jan. 2013; household debt ratio rises, BOK says
  • Central bank has room for rate adjustment: board member Ho
• Ringgit rises 0.5% and is set for 2.7% gain this month; but it is still heading for region’s biggest quarterly slide, down 3.0%
  • Stronger-than-expected gain in Malaysia’s exports in May could see USD/MYR re-testing 3.9893, Bloomberg strategist Andrew Robinson writes; USD/MYR now at 4.0223; exports data due July 1
  • Goldman Sachs now expects rate cut at next BNM meeting
• Onshore and offshore yuan decline, with both headed for monthly loss of 1%; Foreign Ministry spokesman yday said yuan rate isn’t cause of trade imbalance with U.S.
  • ANZ cuts CNY yr-end forecast to 6.75/USD from 6.65; says China likely to tolerate currency weakness as long as no spillover into domestic markets and impact on capital outflow
• Yen edges higher, on course to snap two days of losses
  • BOJ likely to loosen monetary policy at July meeting to slow yen’s gains after Brexit as well as combat falling inflation and slowing economic growth, according to Union Bancaire Privee
  • Overseas investors sold most Japanese bonds and stocks last week since March 2008: Finance Ministry; debt redemption on June 20 may have affected sales, BNP Paribas says
  • May industrial production falls 2.3% m/m vs est. -0.2%; sharp fall suggests economy slowed in 2Q following solid rise in 1Q, according to Capital Economics
  • New BOJ board member Masai to hold press conference 6pm Tokyo time
• Philippine peso steady; down 0.5% vs USD for month; has tendency to weaken in June due to seasonal factors, ANZ says; weakest performance vs NZD, down 5.7%
  • Duterte sworn in as country’s 16th president
  • May bank lending and M3 money supply data due today
• Aussie falls following 2-day rally; heads for first monthly loss since March
  • Australian May credit to business, consumers rises 0.4% m/m vs est. 0.5%; job vacancies -1.9% in May vs +2.8% in April
• Kiwi also snaps 2-day rally, heading for monthly loss of 4.6% and quarterly drop of 2.6%
• Thai baht set to gain 1.4% in June, most since Oct.; data today include May trade and current account balance
• Taiwan dollar strengthens for third day, heads for monthly gain of 1.2%, little changed on-quarter; central bank rate decision due; CBC expected to cut from 1.50% to 1.375%, according to median est. in Bloomberg survey
  • USD/TWD NDFs could eye May high if CBC cuts: analysis