Profit taking in AudNzd? Seems so. Not much flows, we saw Tokyo names hitting bids into 0.7545. Chinese March industrial profits up 3.1%, this has been declining since Sept 2017.
UsdJpy has closed above the Ichimoku Cloud and just a thought, this is the fourth time we broke above the cloud but last 3 times it came back. Nikkei’s opened in positive territory but wasn’t impressive, it was up 0.7% and enthusiasm fizzled. UsdJpy has backed off, we saw some buying at fix and like the equity index, the pair didn’t get far. 109.50 is a hurdle, how large is the barrier? No idea but looks decent. When UsdJpy got to 109.15, rumour surfaced that buy orders scattered ahead of 109.00.
North Asian name was seller of EurUsd near 1.2100; we encountered buyers on the main e-platform but multi-banks were skewed to the left. I believed at that point that bank had hit several banks’ eFX, which explained the skew. EurUsd later got to 1.2098 but buying returned and took Euro back towards 1.2112. Please note, there is a 1.2100 option strike expiring today for Eur2.85bn. Near term support is at 1.2090.
When Kim meets the Moon. North Korean leader Kim Jong-Un and South Korean President Moon Jae-In meet at joint border village of Panmunjom inside the DMZ. Kim makes history as the first leader to enter South Korea since Korean war. Market took it positively, Onshore UsdKrw opened at 1075.0 but month-end demand has the pair towards 1078.7.
CNY fixed today at 6.3393, in my opinion, this is tad high. Onshore spot opened higher too at 6.3445 but then slipped back to 6.33-handle.