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CIBC
FX Flows
The risk-on mood sent AUDUSD rallying from 0.7233 to 0.72565. The pair reached 0.7268, then chatter surfaces that AUD565mio of 0.7265 strikes roll off today, which caused the pullback. Intraday resistance seen at 0.7299.
USDJPY moved higher, I did not see this coming. Guess we are back to this 109-110 trading range. I was informed that the Japanese retail day traders have entered long position, what I suspect is they will continue to add to any move towards 108.80 and profit take close to 110.00.
EURUSD popped up to 1.1730, however good offers have been talked about near 1.1750. There is an option strike at 1.1700 which will be drawn into attention, due tomorrow for EUR3.1bn also EUR1.6bn at 1.1750. Similar price action for GBPUSD, looking at technical chart, support for the day comes in at 1.3632.
Who said what
- Thai PM: Will accelerate vaccinations; expects situation to return to normal quickly; will introduce stimulus measures to ease outbreak impact
- RBA Bullock: Housing credit may peak at annualised 11% early 2022; strong credit growth in excess of income raises risks; RBA-APRA monitor lending at high debt-to-income ratios; hard to judge if house prices are outside fundamentals; any tools should target high indebted borrower risks; bigger interest rate buffers could be a possible tool
- PBoC: Injected daily liquidity to CNY120bn and injected CNY90bn in OMO
- Evergrande: Main unit will make coupon payment for onshore bond due on Sept 23; interest payment has been negotiated with holders
- Majority of US House of Rep votes to advance bill to fund US government through Dec 3 and suspend debt limit until end of 2022; House votes 217-207 to move to debate and vote on passage of temporary government funding and debt limit increase
- IMF Chief Economist Gopinath: Developments regarding Chinese property developer Evergrande very closing watching; downside risks linked to Evergrande could have implications for China’s economic activity and financial stability; China has the tools and policy space to prevent Evergrande situation from turning into systemic crisis
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