Ranges (Up till 11.

55am HKT)
Currency

Currency

EURUSD

1.14615-91

EURJPY

136.29-73

USDJPY

118.70-119.17

EURGBP

0.74115-24

GBPUSD

1.5462-85

USDSGD

1.3727-97

USDCHF
AUDUSD

0.9482-0.9502
0.7297-0.7352

USDTHB
USDKRW

35.15-27
1130.0-1139.2

NZDUSD

0.6788-0.6846

USDTWD

32.248-750

USDCAD

1.2904-40

USDCNH

6.3390-6.3439

AUDNZD

1.0690-1.0772

XAU

1182.4-1186.2

Key Headlines

Asia equities defy Wall Street. First off was

Nikkei on that report about BlackRock. Then
rest of Asia followed on speculative inflows.

Our trader Sam feels that the AudNzd cross has

bottomed, he entered long position with stop below
1.0680. Sam said swap spreads indicate AudNzd should
be trading 1.11/1.12. The 200-day SMA comes in at
1.0766.
Oil futures firmer this morning, gave UsdCad a nudge to
1.2904. We were given clips of UsdCad in the 1.2920s by
UK name. Platform names sold from 1.29-teens. Buy
orders are lined up under 1.2900.
EurUsd offers seen planted in platforms thereafter
1.1490.

Asians

UsdJpy strengthened on positive Nikkei and also

chatter of buying from retail.

Asia equity indices are positive this morning despite

weak Wall Street. First off was Nikkei on that report
about BlackRock. Then rest of Asia followed on
speculative inflows.

Weak labour report but AudUsd turned higher

on short covering and rates spreads.

Most Asian currencies strengthened as well no surprise

especially after the report from Beige Book.

Someone or people are offering Euros from

1.1490 to 1.1500.

Onshore UsdMyr cautiously above 4.10-handle. Traders

are reminded of a Myr8.3bn MGS maturing today.

FX Flows
The surprise of the day goes to the Nikkei225. The index
opened weak but turned around and advanced into the
black. Apparently, the Nikkei move was linked to a
report that Japanese PM Abe is going to seek BlackRock
for help in advising Japanese companies on how to
spend their hoard of cash.
The Nikkei along with Goto-bi Day gave UsdJpy a nudge
up to 119-handle. Global positioning index showing
decent long Jpy position and according to our trader
Jon, short-term/intraday traders will be watch 119.50-55
with care. Fresh buying are now reported at 118.70-80.
Im hearing new sell orders in UsdJpy at 119.20-25 and
more 119.50.

Who said what

BOK: Inflation remains low

BOK: To watch capital flows
BOK: Household debt rose at levels greater than
in recent years
BOK: South Kore domestic demand shows
recovery
Xinhua: China outbound direct investment rose
to 16.5% from Jan-Sept
BOK: Cuts 2015 GDP forecast to 2.7% from 2.8%

News & Data

I was talking to a Japanese friend at a large trading

house and he said though retailers are long UsdJpy, they
wont panic if this 118 breaks. These guy will look to add
at 116s.

A lacklustre Aussie jobs data but combination of weak

US economic data and Beige Book is keeping AudUsd
bid. Weak Aussie futures this morning putting rates
spreads higher and saying AudUsd could move higher to
0.7475. Price action on jobs data, Aud fell from 0.7340
to 0.7301 then returned to 0.7340. Do note there is a
decent Aud expiry in NY today strike 0.7300.

New Zealand Sept BusinessNZ Manufacturing

PMI at 55.4 from 55.0
New Zealand Oct ANZ Consumer Confidence
Index at 114.9 from 110.8
New Zealand Oct ANZ Consumer Confidence
M/M up 3.7% from 0.9%
Australia Sept Employment fell 5.1k from +17.4k
(est. +9.6k)
Australia Sept Unemployment Rate Unchanged
at 6.2%
Australia Sept Full Time Employment fell 13.9k
from +11.5k
Australia Sept Part Time Employment up 8.9k
from +5.9k
Australia Sept Participation Rate at 64.9% from
65.0%

These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.

Bank of Korea leave

unchanged at 1.5%

key

interest

rates

WSJ:
Valeant
Pharmaceuticals
Under
Investigation by Federal Prosecutors
Valeant Pharmaceuticals International Inc. said late
Wednesday it had received subpoenas from federal
prosecutors seeking information related to how it prices
drugs, distributes them and helps patients afford the
medicines. The subpoenas also seek information and
documents from the Canada-based drug company
regarding information it provided to the Centers for
Medicare and Medicaid Services.
http://www.wsj.com/articles/valeant-pharmaceuticalsunder-investigation-by-federal-prosecutors1444874710?mod=e2tw
Reuters Exclusive: Canada's Linamar in talks to
buy French auto-parts maker Montupet
Canadian auto parts manufacturer Linamar Corp is in
talks to buy French peer Montupet in a deal that values
the company at roughly 800 million euros, two sources
familiar with the matter said on Wednesday. Montupet is
working with U.S. investment bank Jefferies to negotiate
a deal, the sources said, cautioning that no transaction
was certain and talks could still fall through.
http://www.reuters.com/article/2015/10/15/usmontupet-m-a-linamar-exclusiveidUSKCN0S902U20151015?
feedType=RSS&feedName=businessNews
FT: Politics tempers Spains economic hope
Spain finds itself today in a strange state of suspension.
In political terms, the country is still struggling to make
sense of last month's election in Catalonia. The vote was
widely billed as a test of strength for the regions
independence movement but produced conflicting
claims of victory and all-round confusion. Most believe
the muddle will continue at least until Spains general
election in December, the second major source of
political uncertainty hanging over the country.
http://www.ft.com/intl/cms/s/0/7022d3c2-56da-11e59846-de406ccb37f2.html#axzz3oJEZvDEs
Times Online Exclusive: shock after HSBC
orders staff to take 10% pay cut
Hundreds of workers at HSBCs investment banking
division in London have had their pay cut by 10 per cent
and been ordered to take two weeks of unpaid leave by
the end of the year, The Times has learnt. The bank,
which is under intense pressure to reduce costs, broke
the news to staff last week and instructed managers that
there would be 0 per cent exceptions.
http://www.thetimes.co.uk/tto/business/industries/ban
king/article4586160.ece

WSJ:
U.S.
Economy
Continues
Modest
Expansion at End of Third Quarter, Feds Beige
Book Says
Federal Reserve said Wednesday that a number of
regional Fed districts blamed the strong dollar for
restraining manufacturing activity and tourism spending
from late August through early October, according to
anecdotes gathered from the central banks regional
survey of economic conditions.
http://www.wsj.com/articles/u-s-economy-grows-atmodest-pace-at-end-of-third-quarter-beige-book-says1444845863?mod=wsj_nview_latest
Telegraph: EDF and Chinese on brink of Hinkley
Point nuclear deal
EDF and its Chinese partners are on the brink of a deal
to build the Hinkley Point nuclear power plant and are
preparing to sign a heads of terms agreement during
next weeks visit by Chinese president Xi Jinping.
Although the deal is not yet done, with negotiations
expected to go to the wire, sources say they are
optimistic they will be ready to unveil a major pact that
will make clear the first new UK nuclear plant in a
generation will go ahead.
http://www.telegraph.co.uk/news/earth/energy/nuclear
power/11932229/EDF-and-Chinese-on-brink-ofHinkley-Point-nuclear-deal.html
WSJ: Moodys Upbeat on New Zealand
Government Surplus
News the New Zealand government balanced its books
for the first time since 2008 was well received by
Moodys Investors Service. The small operating surplus
continues the trend of improving (New Zealand)
government finances. Given the economic outlook for
somewhat slower, although still solid, economic growth,
we expect that modest surpluses will continue in the next
few years, Steven Hess, senior vice president at
Moodys, told The Wall Street Journal in an email.
Moodys was the only major ratings firm to retain New
Zealands triple-A stamp in the aftermath of the global
financial crisis.
http://www.wsj.com/articles/moodys-upbeat-on-newzealand-government-surplus-1444856856?
mod=wsj_nview_latest
WSJ: Democrats Say the Economy Stinks
The end of a two-term Presidency is typically a time for
taking credit, celebrating achievements and promising to
continue successful policies. So what happened to the
Obama Democrats? At Tuesday nights Democratic
debate, not one of the five candidates even attempted to
defend the results of President Obamas economic
policies. Instead their blistering critiques of the status
quo showed they all agree on at least one point: Todays
economy is a disaster for hard-working Americans.

These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.

http://www.wsj.com/articles/democrats-say-theeconomy-stinks-1444863161?mod=wsj_nview_latest
Telegraph: AB InBev understood to be exploring
exit from SABMiller's US venture
Anheuser-Busch InBev is exploring a potential exit from
SABMillers American joint venture in a deal that could
be worth $10bn (6.5bn). It is understood that the
Belgian-Brazilian giant has started to gauge the interest
of SABs partner, the American-Canadian brewer Molson
Coors, about taking full control of MillerCoors.
http://www.telegraph.co.uk/finance/newsbysector/retai
landconsumer/leisure/11932251/AB-InBev-understoodto-be-exploring-exit-from-SABMillers-US-venture.html
FT: Fed splits fuel doubts on 2015 rate rise
Market concerns are rising over divisions at the top of
the Federal Reserve on when to lift interest rates, casting
fresh uncertainty over the US central banks strategy for
withdrawing its monetary stimulus. The divisions burst
into the open after when two Fed board members
signalled that they oppose a near-term increase in
interest rates, questioning the approach adopted by chair
Janet Yellen amid divisions over the outlook for
inflation.
http://www.ft.com/intl/cms/s/0/660790e6-71e5-11e5ad6d-f4ed76f0900a.html#axzz3oJEZvDEs
Business Times: MAS ignores calls for more
aggressive easing of Singdollar
SINGAPORE'S central bank disappointed the bears on
Wednesday, easing monetary policy only slightly by
keeping the Singapore dollar on an appreciating path but at a marginally slower pace than before. Monetary
Authority of Singapore (MAS) said that it is continuing
with its policy of a "modest and gradual" appreciation of
the S$NEER (Singapore dollar nominal effective
exchange rate) band, although the rate of appreciation
will be "reduced slightly". It made no change to the width
of the policy band and the level at which it is centred.
http://www.businesstimes.com.sg/bankingfinance/mas-ignores-calls-for-more-aggressive-easingof-singdollar
Business Times: Singapore Q3 growth not
enough to lift full-year GDP forecasts
Singapore's economy threw a nice little surprise for
observers on Wednesday as it registered a 0.1 per cent
quarter-on-quarter growth in the third quarter, narrowly
avoiding a technical recession. But with economic
growth still not gaining enough momentum, optimism
remains muted, with the government and several private
banks here keeping growth forecasts unchanged.
http://www.businesstimes.com.sg/governmenteconomy/q3-growth-not-enough-to-lift-full-year-gdpforecasts
These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.