CIBC FX Flows: FXWW

From the FXWW Chatroom: – Nikkei Index powers above 23k, up nearly 2% as I write, UsdJpy followed towards 114-handle where offers stalled the move. Heard Tokyo names have offers lined up to 114.50. Please note there are large option strikes due next week, 115.00 on Tues Nov 14 worth more than $3bn. Towards the late morning, UST yields up, an added incentive for traders to buy UsdJpy.
– Set of weak Aussie numbers led to softer Aussie dollar. The Sept home loans fell 2.3% from revised +1.5% while investment lending fell 6.2% from +4.8%. Our macro strategist Patrick Bennett said these numbers will not be a concern for RBA that heat coming out of the market. AudUsd slipped back to 0.7665, intraday support is still 0.7625-30, offers atop the 200-Day SMA 0.7699. Stronger China’s October inflation and AudUsd returned to 0.7677.
– Article in The Times said European Union leaders are preparing for the fall of British PM Theresa May before the New Year. They fear the instability of May’s government raises the change of leadership. Times said no options are being excluded in Brussels including a no deal Brexit. GbpUsd 100-Day SMA comes in at 1.3102, stop sell orders located under 1.3050 and 1.2995. Sellers atop 1.32-handle.
– Kiwi has had a slow session post-RBNZ. Moved lower on comments from RBNZ Assistant Governor John McDermott, then it was back to square one. Bids are said to be surrounding 0.6900-10 while sellers atop 0.7000.
– EurUsd is stuck. Bids at 1.1550 and offers near 1.1650. Option strikes maturing today are Eur1.44bn at 1.1600; 1.1680 has Eur1.1bn; and 1.1700 for Eur1.4bn. We have several ECB speakers today, so watch the headlines.
– Not great deal to mention on UsdCad. North Asian names bought and we got to 1.2740 following AudUsd.
Asians
Chinese Oct CPI and PPI exceeded expectations; CNY fix was in line with expectations. Onshore CNY opened at 6.6340 then backed off below 6.6300 taking the offshore along. USDCNH has moved lower from 6.6370 to 6.6280, we saw real money accounts loading up CNH in both spot and 1-month outright.
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