Ranges (Up till 11.

55am HKT)
Currency

Not a lot I can describe for UsdCad. Rates are ignored;

FX is paying close attention to the oil prices.

Currency

EURUSD

1.0658-92

EURJPY

131.485-80

USDJPY

123.18-405

EURGBP

0.7020-32

GBPUSD

1.5175-1.5205

USDSGD

1.4208-34

USDCHF
AUDUSD

1.0092-1.0110
0.7083-0.7108

USDTHB
USDKRW

35.945-99
1167.4-1170.9

NZDUSD

0.6456-96

USDTWD

32.765-33.00

USDCAD

1.3323-45

USDCNH

6.3910-6.4030

AUDNZD

1.0925-80

XAU

1081.7-1085.4

Key Headlines

RBA Minutes published today and our trader

Sam was quick to point out that the meeting
took place ahead of the stellar employment data;
so anything negative should be ignored.
One of the more important events investors are
keep close tab on is the New Zealand dairy
auction. Dairy futures are pointing to weak sale.
Saw a lot of Euro sellers today but we
encountered bids below 1.0665

FX Flows
Todays headline from RBA October Minutes that
inflation expectations may afford scope for further
easing but this meeting was after the stellar employment
numbers we saw last week. As what our trader Sam
expected, we saw a kneejerk reaction from 0.7100 to
0.7091 then bounced right back. Rates were unchanged
and market went for AudNzd. A softer Q4 New Zealand
inflation expectation at 1.85% versus last quarters 1.94%
did the job and took out stops in AudNzd at 1.0970.
AudNzd dominated the NzdUsd. The inflation
expectation confirmed it. With the dairy auction due
tonight, Kiwi dairy futures are pointing to a weak result.
Our trader Sam has been long, survived yesterdays move
and he is also long Feb 15 AudNzd option 1.1000 strike.
Rates are pointing to 1.1260.
EurUsd ended NY at 1.0687 we saw selling interest
from regional banks and also US macro and drove the
pair lower. To be honest, feels like there are bids
scattered below 1.0665 and making the move down very
difficult. For what its worth, there is a Eur1.2bn option
expiry NY cut at 1.0675.
Anticipating a strong Nikkei open, interbank bought
UsdJpy in the 122.20s but sadly, exporters/margin
accounts were on the offers. There is also a chatter of
semi-official offering above 123.50 but no confirmation.

We are seeing corporates names increasing hedges on

spot Gold this morning. Opened at 1084.2, moved down
to 1081.7. Corporate are sellers of Gold buying Aud and
Usd.

Who said what

Bank of Korea Lee: 2016 economic growth will

be in line with latest forecast
ECB Praet: Sees risk of inflation expectations deanchoring
ECB Praet: Inflation expectations require
stimulus review
ECB Praet: De-anchoring risk and economic
slack a dangerous cocktail
RBA Minutes: Inflation expectations may afford
scope for further easing
RBA Minutes: Prospects for economic
improvement have firmed little
RBA Minutes: Aud adjusting, boosting demand
for domestic demand
RBA Minutes: Sees inflation consistent over next
1-2 years
RBA Minutes: Asia slowdown is more persistent
than expected

News & Data

Australia ANZ Roy Morgan Weekly Consumer

Confidence Index at 115.9 from 116.6
Singapore Oct Non-Oil Domestic Exports M/M
rose 1.1% from +2.8%
Singapore Oct Non-Oil Domestic Exports Y/Y
fell 3.2% from 5.7%
Singapore Oct Electronics Exports Y/Y fell 0.5%
from +0.3%
New Zealand Q4 2-Year Inflation Expectations
slipped to 1.85% from 1.94%

WSJ: Abenomics Sputters in Japan

Japan is in recession for the fifth time in seven years,
and the second time since Shinzo Abe returned to office
three years ago. The energetic Prime Minister who
promised to end his countrys stagnation is failing at the
task. Its time for a rethink. Mr. Abes economic plan
consisted of three arrows, starting with fiscal spending
and monetary easing. The result is a national debt set to
hit 250% of GDP by the end of the year. The Bank of
Japan is buying bonds at a $652 billion annual rate, a
more radical quantitative easing than the Federal
Reserves. Yet deflation continues because banks havent
increased lending.
http://www.wsj.com/articles/abenomics-sputters-injapan-1447719753?mod=wsj_nview_latest

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.

WSJ: Yuans Adventure Abroad Stumbles in

London
London wants to become the Wests first trading hub for
the yuan. As Xiao Tians recent shopping trip there
shows, the city still has a long way to go before it can
fully welcome the Chinese currency. Ms. Xiao, a 38-yearold advertising executive from eastern China, was
pleasantly surprised to find Mandarin-speaking staff at
luxury outlets along the citys Oxford Street shopping
area. But unlike their American, German, French and
Japanese counterparts, Chinese tourists generally still
cant pay with their home currency. They would take the
U.S. dollar, the euro and the Japanese yen, but not
renminbi, said Ms. Xiao while trying on a royal blue
trench coat at a Burberry store, using another name for
the yuan.
http://www.wsj.com/articles/yuans-adventure-abroadstumbles-in-london-1447718297?
mod=wsj_nview_latest
AFR - Reserve Bank of Australia: scope for
commodity price rebound 'limited'
China's transition from heavy industry and exports to a
more consumer-driven growth model has left little scope
for a recovery in commodity prices, the Reserve Bank of
Australia warned on Tuesday. Assistant governor
Christopher Kent told economists and analysts at UBS's
Australasian conference in Sydney that the move from
investment- to consumer-led growth in Australia's
biggest trade partner was "happening gradually". Dr
Kent said that if commodity prices were to fall further
there would need to be a further fall in the exchange rate.
http://www.afr.com/markets/reserve-bank-of-australiascope-for-commodity-price-rebound-limited-20151116gl0kjv
Ambrose Evans-Pritchard in Telegraph: France
swats aside EU budget rules in rearmament blitz
France has invoked emergency powers to sweep aside
EU deficit rules and retake control over its economy after
the terrorist atrocities in Paris, pledging a massive in
increase and security and defence spending whatever the
cost. President Francois Hollande said vital interests of
the French nation are at stake and there can be no
further justification for narrowly-legalistic deficit rules
imposed by Brussels. The security pact takes
precedence over the stability pact. France is at war, he
told the French parliament. Defence cuts have been
cancelled as far out as 2019 as the country prepares to
step up its campaign to eradicate ISIS, from the Sahel
in West Africa, across the Maghreb, to Syria and Iraq.
http://www.telegraph.co.uk/finance/economics/119995
44/France-swats-aside-EU-budget-rules-inrearmament-blitz.html

Telegraph: Finland to discuss leaving eurozone

after disgruntled citizens force debate
Finland's parliament will debate next year whether to
quit the euro, a senior parliamentary official said on
Monday, in a move unlikely to end membership of the
single currency but which highlights Finns'
dissatisfaction
with
their
country's
economic
performance. The decision follows a citizens' petition
which has raised the necessary 50,000 signatures under
Finnish rules to force such a debate, probably the first
such initiative in any country of the 19-member euro
zone.
http://www.telegraph.co.uk/finance/economics/119991
65/Finland-to-discuss-leaving-eurozone-afterdisgruntled-citizens-force-debate.html
Nikkei: Capital spending delays took toll on JulySeptember GDP
Weak capital investment led Japan's economy to shrink
by an annualized 0.8% in the three months ended
September, with companies holding out for sunnier skies
as the outlook for China's economy grew darker. This
marked the second straight quarter-on-quarter
contraction in gross domestic product following a 0.7%
slide in April-June, the Cabinet Office revealed Monday.
A 1.3% drop in capital investment was the main cause of
the decline. Corporations had planned to invest a good
deal this fiscal year, though the follow-through has been
lacking.
http://asia.nikkei.com/PoliticsEconomy/Economy/Capital-spending-delays-took-tollon-July-September-GDP
Yonhap News: Park calls for careful adjustment
of monetary policy
Speaking in Antalya, South Korea President Park Geunhye called for a careful adjustment of monetary policies
of advanced countries amid lingering worries over a
potential Fed rate hike. Park said, "The normalization of
monetary policies of advanced countries should be
adjusted in a careful and gradual manner by taking into
account their impact on the world economy." Park also
proposed that members of the Group of 20 advanced and
emerging economies coordinate their policies to stabilize
the market in case that the market is destabilized.
http://english.yonhapnews.co.kr/national/2015/11/16/1
/0301000000AEN20151116007755315F.html

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.