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Ranges (Up till 12.

20pm HKT)
Currency

Currency

EURUSD

1.0616-27

EURJPY

130.185-35

USDJPY

122.57-76

EURGBP

0.7020-265

GBPUSD

1.5117-30

USDSGD

1.4037-72

USDCHF
AUDUSD

1.0217-28
0.7216-62

USDTHB
USDKRW

35.64-735
1141.8-1147.1

NZDUSD

0.6561-98

USDTWD

32.435-480

USDCAD

1.3285-1.3304

USDCNH

6.4193-6.4290

AUDNZD

1.0975-1.1036

XAU

1069.9-1074.8

Key Headlines

Happy Thanksgiving and a very dull session for


Asia

Only thing worth mentioning was Aussie after


the weak Q3 capex.

Chinese regulators NDRC is considering probing


malicious short selling of metals causes higher
Copper and iron-ore futures

FX Flows
Weak Q3 Aussie capital expenditure falling 9.2%
versus -4% previous quarter sent AudUsd to 0.7216 and
1.0987 against the Kiwi. However, the plan for Capex
2015/2016 at Aud120.4bn; within the range of Aud117124.2. AudUsd clawed back some loss but it was AudNzd
that weakened to 1.0975.
Nikkei climbed towards 20k but UsdJpy could not.
Japanese were better sellers for month end book
balancing. I hear better offers are planted beyond 123.00
and chatter of buy orders beneath 122.45.
Seems like some short covering in EurUsd in the 1.06teens and stop loss orders building above 1.0640.
Story in Bloomberg that Chinese regulators NDRC is
considering probing malicious short selling of metals.
This sent Copper futures up 3.8% while Dalian Iron-ore
futures up 2.45%.

Asians
Usd held steadily against the Asian currencies seen
couple of interbank traders struggling to claw back their
short Usd positions.
UsdSgd encountered two-way flows, corporate hedging
had the pair trading higher but momentum funds were
better sellers through the morning.
Short covering also in UsdMyr following 3 days of
selling.

The China fix today at 6.3896 in line with most trading


models. Onshore spot is also steady; some chatter of
locals defending USDCNY at 6.3900-20.

Who said what

China NDRC: Considering a request from a


metal industry group to probe malicious shortselling at local metal exchanges
PBOC Sheng: Current FX volatility and outflow
is temporary
PBOC Sheng: Yuan depreciation wont be big
despite short-term pressure
PBOC Sheng: China/US rate difference to stay in
future
PBOC Sheng: World economy doesnt support
multiple US rate rises
PBOC Sheng: Market exchange rate may overreact in short-term

News & Data

South Korea Nov Consumer Confidence at 106


from 1054
New Zealand Oct Trade Deficit narrowed to
Nzd963mio from Nzd1.222bn (est. Nzd1bn)
New Zealand Oct Exports at Nzd3.83bn from
Nzd3.69bn
New Zealand Oct Imports at Nzd4.79bn from
Nzd4.91bn
New Zealand Oct Trade Balance 12 Month YTD
Nzd3.237bn from Nzd3.235bn
Australia Q3 Private Capex falls 9.2% from -4%
Australia Plans for Capex 2015-2016 at
Aud120bn

WSJ: Brazil Dams Failure Flooded Region With


Toxic Waste, U.N. Report Says
An avalanche of mud unleashed by a massive dam failure
in Brazil earlier this month contained high levels of
toxic heavy metals and other toxic chemicals, a pair of
United Nations experts said Wednesday. Special
rapporteurs John Knox and Baskut Tuncak cited new
evidence showing the presence of toxic waste in the
mud, which swallowed entire communities and polluted
hundreds of miles of waterways in southeast Brazil.
Their findings contradicted repeated statements by the
Brazilian government and the mining companies
responsible for the dam that the chemicals released by
the accident were harmless.
http://www.wsj.com/articles/brazil-dams-failureflooded-region-with-toxic-wastes-u-n-report-says1448494712
FT: Chinas national team owns 6% of stock
market

These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.

Chinas national team owns at least 6 per cent of the


mainland stock market following the summer rescue to
prop up prices, putting even more of the $4.2tn bourses
into state hands.
http://www.ft.com/intl/cms/s/0/7515f06c-939d-11e59e3e-eb48769cecab.html#axzz3sYTN1Bcu
WSJ: South Korea Finds Volkswagen Cheated on
Emissions
The South Korean government said Thursday that
several diesel-powered cars imported and sold in the
country by Volkswagen AG and its premium Audi AG
brand were found to have installed emissions-cheating
software. A two-month investigation into seven models
made by the German car maker showed the vehicles used
illegal defeat-device software to bypass stringent diesel
emissions tests, the Ministry of Environment said in a
statement. The ministry said it has ordered a recall of
about 125,000 affected vehicles and a suspension of
unsold Volkswagen and Audi vehicles. It also fined the
German car maker a total of 14.1 billion won ($12.3
million).
http://www.wsj.com/articles/south-korea-findsvolkswagen-cheated-on-emissions-1448505265?
mod=wsj_nview_latest

crisis countries. Now it looks increasingly like a stressed


economy itself. How has this happened?
http://www.wsj.com/articles/finlands-problem-isntthe-euro-1448490636?mod=wsj_nview_latest
Business Times: For S'pore economy, a heavy
note of caution
Singapore economy could grow as little as one per cent
next year, according to official forecasts - marking one of
the most pessimistic projections in at least 15 years,
outside of periods of acute crisis. Announcing the
government's 2016 GDP growth forecast for the first
time on Wednesday, the Ministry of Trade and Industry
(MTI) said that it expects the Singapore economy to
expand by 1 to 3 per cent next year.
http://www.businesstimes.com.sg/governmenteconomy/for-spore-economy-a-heavy-note-of-caution

FT: Delays risk half-baked banking union,


Brussels warns Italy
Brussels has made a last-ditch appeal to Italy not to
delay the launch of the euro areas flagship system for
handling crisis-hit banks. Only days after Italy rushed
through the recapitalisation of four banks before the
tougher EU rules take effect on January 1, the European
Commission warned in strong terms that slow Italian
procedures risked leaving the system half baked.
http://www.ft.com/intl/cms/s/0/368c23b2-9388-11e5bd82-c1fb87bef7af.html#axzz3sYTN1Bcu
Simon Nixon in WSJ: Finlands Problem Isnt the
Euro
Which has been the worst performing economy in
Europe this year, excluding Greece? The surprising
answer is Finland. In the third quarter of this year,
Finlands economy contracted by 0.6%, putting it on
course for a possible fourth consecutive year of
recession. Since 2008, its output has shrunk by 6%,
faring only slightly better than Italys roughly 8% decline
over the same period. This might seem an odd record for
a country whose sovereign debt still enjoys the rare
accolade of a Triple-A rating, whose government debt-toGDP ratio remains a relatively modest 62%, and which
didnt experience a banking bust. Finland is ranked by
the World Economic Forum among the top 10 most
competitive economies in the world, and its governments
have taken a consistently hard line toward eurozone
These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.