FX Flows

From the FXWW Chatroom: Usd weaker led by UsdJpy but price action showed that traders were rather cautious.

In UsdJpy, at the start we saw bids under 108.60 placed in the main platform being and all filled when Japanese walked in. Heard main sellers were retail accounts and I suspect some macro names participated in the selling. We then took out the 108.20 barrier, very limited retracement. Heard there are several 108.00 barriers out there. Strange that Japanese Chief Cabinet Secretary Yoshihide Suga told reporters this morning that Japan is not intervening in FX market.

10-year of UST yields opened at 2.20%, some 2.37 bps lower from last week. Nikkei 225 fell near 0.6% at open and slowly recovered to -0.25%.

Weak Usd pushed Aud, Nzd, Eur and Gbp higher but by just little. EurUsd rose to 1.0620, shy of the 100-Day SMA 1.0625. Seemed that French Election is keeping Euro bulls on the side. In The Guardian, Le Monde says France is in the unusual situation of having four presidential candidates, any one of whom could win. Like Le Pen, Mélenchon is appealing to young voters with his hologram meetings, his upbeat election messages and his entertainingly forthright approach to televised debates.

There are two decent EurUsd option strikes maturing tomorrow. At 1.0600 worth more than Eur3.4bn and Eur2.5bn at 1.0650.

AudUsd edged up slowly, we revisited 0.7594 on the Chinese GDP data. For what it’s worth, AudUsd has been on this 0.7590’s twice over the past 72-trading hours and got rejected. We don’t see much offers up there but am sure there are some stops above. Keep an eye on the iron ore and SHFE Steel Rebar futures contracts.

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