Jpy-crosses jumped as Xi spoke, AudJpy advanced to 82.93, UsdJpy rose to 107.24. Keep an eye on this level 107.19, the Ichimoku Cloud.
Both AudUsd and NzdUsd printed higher, 0.7737 and 0.7331, mostly driven by cross play. Aussie resistance at 0.7748, 38.2% Fibonacci retracement. Likewise, heard offers in Nzd at 0.7350.
UsdCad took out several bids below 1.2690, which apparently is the 100-Day SMA. We recommended short UsdCad yesterday, entry was 1.2775. We would like to pick top now 1.2730-50. There is a 1.2700 option strike rolling off today for $550mio
Not a whole lot to talk about in Eur and Gbp. Mild offers are reported in EurUsd scattered from 1.2330 to 1.2350. There is a 1.2300 option strike rolling off today for Eur1bn.
One thought, it is not Xi’s job to talk about trade war, nor will he mention anything. His men will act on his behalf, ie the MOFCOM.
Malaysian election and nomination dates due to be announced later today.
Onshore spot UsdKrw was bid initially. We heard Usd demand by corporate accounts linked to dividend payment, not unusual. Besides that, market has already priced in all the positive news like North/South Summit later in April and US/North meeting in May. Traders gave Xi’s speech a like and sold UsdKrw, put the pair at 1063.8.
USDCNH weakened after the CNY fix. Sellers were mainly North Asia from 6.3030’s and pretty consistent too. The sell-off hastened on Xi’s speech, North Asian names participated and we got down to 6.2841