CIBC FX Flows: FXWW

From the FXWW Chatroom: Asia kicked off with Usd sliding little across the board. Even USDCNH fell from 6.6672 to 6.6564; 10-year UST down 1 bp.
Tokyo opened UsdJpy at 112.85 and slipped towards 112.55, this is where I mentioned short-term support 112.50-55. While UST yields are down, Nikkei is up near 0.35%. We have not been able to break clear of 113.30 and I do suspect that technical guys will want to sell this pair towards 113.00-10 again. Short-term support at 112.50-55 then 112.25. Not much data and option strikes maturing today are insignificant.
Story in the Kyodo News that Nissan has falsified inspection documents. This is not new. On Monday, Nissan said it will recall 1.2mio vehicles in Japan. Nissan shares fell 5%.
EurUsd advanced sharply at the Tokyo open then exhausted after 1.1780. Whilst this is pure Usd move, some guys in the streets are rather wary about the Catalan situation. Front page of the major newspapers are reporting Catalonia will declare independence in matter of days following the comments from Spanish King Felipe. EurUsd support comes in at 1.1680, stops thereafter. Please note there are some Eur4bn worth of option strikes maturing on Friday from 1.1750 to 1.1700. Offers are expected near 1.1800 but better 1.1840-50.
I was told that some US funds sold GbpUsd on this move to 1.3270 but this pair is bid. Think we might see a slow grind to 1.3300 and renewed offers mentioned ahead of 1.3350. The Telegraph reported that PM Theresa May will be telling her Tory Party to stop infighting, “shape up” and do their duty for Britain.
Commodity currencies strengthened against the greenback. The Aussie dollar has held well around 0.7800, I heard some exporters were buying there alongside with option players. There are about Aud1.85bn worth of 0.7800 strikes maturing this week New York cut. Today is not different, I am sure we will see buyers there again. Coincidentally, support for AudJpy at 88.00, and AudUsd leg comes in at 0.7795. AudUsd rose to 0.7875, major resistance at 0.7890.
Kiwi printed 0.7147 early morning but weak Usd sent the bird towards 0.72-handle. Interesting that the 50-Week SMA comes in at 0.7146, will be interesting to see how this pair closes for the week.
UsdCad moved to 1.2457, we saw selling from platform names from the 1.2470’s along with one large corporate account.
Asians
China, Taiwan and South Korea remained closed today – Usd backed off across the EM.
There isn’t much to pen in this slow market – without onshore Krw, the offshore 1s NDF dipped briefly under 1140 and came back. Our trader Perry said the market is position nett long UsdKrw NDF and no follow through on topside.
We suspect some stop sell orders in USDCNH took place this morning. The offshore opened at 6.6672 likely took out stops from 6.6590 and there was little bounce. Lowest print was 6.6460, support now at 6.6400.
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