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EM FX Party's Over: Dollar Rallies In Early Asia Trading As China's Bond Bubble Gathers Pace
After two days of relative USD carnage in and across the emerging and asian FX markets, early AsiaPac trading this evening is seeing that trend revert with the Ringgit, Rupee, and Lira sliding. After-hours gains in US equity futures have been erased, despite USDJPY's continued BoJ-aided push higher (though it seems 119.00 is the new ceiling for now). China's government bonds remain extraordinarily bid (outperforming TSYs by almost 60bps in the last few weeks) with yields dropping to 6-year-lows, as corporate bond bubble fears rotate modestly back to govvies. Aussie miners are under pressure with Iluka Resources getting hammered on "excess capacity" warnings.
The USDollar is rallying against Asian FX in the early going...
And USDJPY has run stops and rolled over...
Despite ongoing strength in Chinese equities (obeying the commands of The National team that "the correction is nearly over")...
China 10Y yields have collapsed in the last few weeks (down 50bps outright and 43bps tighter than UST since 8/20 devaluation)
The China-UST spread is nearing 100bps - its lowest in 4 years...
Offshore Yuan signaled downward pressure on the fix and sure enough, PBOC weakened the Yuan...
But it remains an ugly week for Aussia miners (with Iluka Resources gettting "Glencore"'d)...
Charts: Bloomberg
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did qe4 start oct 3ed?
The world shall turn on America and religate it into the fires of hell.... GET OUT NOW
relegate.
thanks.. spell checker not working good on this site
For fucks sake can some pop this zit and let the healing begin
Someone's carry trade needs Viagra. The shell companies need liquidity. They always swallow and never spit.
Nor is grammar check. LOL
where is AUDJPY to tell Wait What how to trade?
now that USDJPY is losing its MoMo mojo, we need a new carry pair to take the torch!
http://www.marketwatch.com/investing/Currency/AUDJPY?countrycode=US
Ha, ha, ha. They head faked everybody for a couple of days with a series of artifical ramps, which brought the rubes bleating back into the pen for their monthly shearing.
"Where do I put my money?"
"How about over here-- in MY pocket."