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29 May 2013
Flash: The stronger USD was felt across Asia - DBS Group
FXstreet.com (Barcelona) - DBS Group analysts note that the stronger USD was felt across Asia.
They start by noting that USD/SGD hit 1.27 with USD/KRW above 1130 again. Further, USD/THB is at 30, with USD/TWD not far behind. They add that the Malaysian ringgit has returned its post-election gains. Down under, they see that the Australian dollar is testing the 0.9579 low seen in mid-2012. All eyes will be on the Japanese yen during the Asian session. They write, “Although the Nikkei 225 opened 180 points higher, it remains wary that the sell-off in US treasuries may spillover into Japanese Government Bond (JGB) market. If so, USD/JPY could fall again. As we head into the US session, it remains to be seen if the 10-year US bond yield is prepared to break above its trendline resistance around current levels ahead of tomorrow’s GDP report and Friday’s core PCE deflator release. In all, this has been a volatile last week for May.”
They start by noting that USD/SGD hit 1.27 with USD/KRW above 1130 again. Further, USD/THB is at 30, with USD/TWD not far behind. They add that the Malaysian ringgit has returned its post-election gains. Down under, they see that the Australian dollar is testing the 0.9579 low seen in mid-2012. All eyes will be on the Japanese yen during the Asian session. They write, “Although the Nikkei 225 opened 180 points higher, it remains wary that the sell-off in US treasuries may spillover into Japanese Government Bond (JGB) market. If so, USD/JPY could fall again. As we head into the US session, it remains to be seen if the 10-year US bond yield is prepared to break above its trendline resistance around current levels ahead of tomorrow’s GDP report and Friday’s core PCE deflator release. In all, this has been a volatile last week for May.”