AudJpy resistance forced AudUsd from 0.7720 to 0.7703. There is a technical resistance at 0.7729, a trendline from Aug 10 2016. This is the same trendline that capped the Aussie last Friday. Coincidentally, trendlines in AudJpy comes in at 80.76 and 80.93, GbpAud support at 1.6029. AudJpy selling continued – sent AudUsd into sub-0.77. We ran into platform names hitting bids in AudUsd 0.7697-99.
We saw Japanese names buying UsdCad this morning but price action was nothing to shout about. UsdCad closed 1.3362 in Toronto and traded to 1.3390 amid slightly weak oil futures. Hearsay buy orders are scattered beneath 1.3335 and offers atop 1.3400-20. I am told some of these offers are linked to an large option expiry Nov 10 strike 1.3400, notional $1.5bn. Our strategist Bipan Rai sounded out CadMxn cross is trading close to important support 13.85. If we break that, things will get interestingly ugly.
China Oct trade data published this morning was overall an okay report. Patrick Bennett said the exports were softer than expected but better than Sept’s number. Same can be said about the import numbers. Patrick expects this numbers to reflect well on this month’s Aussie trade data. He said cargoes from Australia’s Port Hedland climbed to 41.6mio tons in Oct, up 14% from a year earlier. That’s above the monthly average of 39.4mio so far this year, and compares to 41.8mio tons in Sept and the record 42.9mio in Aug. Oct China trade surplus of $49.06bn up from $41.99bn. Lower prices depress imports, but volumes year-to-date and most Y/Y are stronger.
UsdKrw is very offered this morning, moving away from 1141.8 high onto 1137.0. Bloomberg News said the weak Usd is due to US Presidential Elections, Clinton’s edge over Trump but I don’t think that’s the cause. I am told that market is paring long positions from CTA-type accounts (who went long 1145-1150). Another reason is the selection of new PM. Early today, Yonhap News said President Park Geun-hye jettisoned her PM-designate, caving in to mounting calls to withdraw the “unilateral” nomination, which aggravated a political deadlock sparked by a corruption scandal involving her confidante. Market saw this as positive step towards reinstating stability in country.
USDCNY fixed today at 6.7817 as USDCNH edges closer to 6.8000. Talk of mainland banks offering USDCNH at 6.7945 (been there last 15 hours or so). Profit taking of USDCNH after Asia opened, spot drifted towards 6.78-handle.