Ranges (Up till 11.

32am HKT)
Currency

Currency

EURUSD

1.1072-82

EURJPY

137.80-88

USDJPY

124.38-50

EURGBP

0.71055-10

GBPUSD

1.5576-90

USDSGD

1.4050-93

USDCHF
AUDUSD

0.9781-94
0.7363-86

USDTHB
USDKRW

35.49-62
1182.2-1186.9

NZDUSD

0.6570-0.6605

USDTWD

32.38-635

USDCAD

1.3079-1.3103

USDCNH

6.4320-6.4545

AUDNZD

1.1178-1.1220

XAU

1116.8-1119.1

Key Headlines
PBOC fixed the central parity rate at 6.3966, this is in
line with the previous onshore spot close. Onshore,
which closed at 6.3947, opened lower and dipped to
6.3860. Into late morning, onshore USDCNY popped to
above 6.4000 some said it was onshore/offshore
arbitraging. USDCNH turned around to 6.4420.
Thb weakened to 35.62 following last nights bomb
blast in Bangkok. We believe the move is initiated by
interest on stop loss trigger.
Our traders like UsdCad higher given the pressure on
the Western Canada Select Crude, which is trading at
$19 discount to WTI. For short term stop, should be at
1.2990 while long term below 1.2950. Their target is 1.35.
Buy orders are listed beneath 1.3075; not great deal.
Offers above 1.3175.
There is an interesting article that came out in Nikkei
late last night about meetings between BOJ Governor
Kuroda and PM Abe. These meetings are hushed and
takes place unannounced over lunch at PM Abes
residence and always ahead of G7 finance ministers
meetings. This year, G7 on Sept 4 in Turkey. As such,
Japanese experts are speculating Abe and Kuroda will
likely meet later this month. Nikkei said about 30% of
economists surveyed said the BOJ would implement
additional easing around October 2015.

FX Flows
It was a very slow start for G10 ahead of release of RBA
August Minutes.

from 0.7363 to 0.7383. In the statement, RBA said

Australian economy was adjusting to shift in resources
sector activity from investment to production phase;
shift had been accompanied by large declines in
commodity prices and assisted by weak Aud. Low
interest rates continued to support strong growth and
the further Aud decline was expected to stimulate
economy through stronger net exports. Buy orders are
lined up under 0.7330 and sell orders above 0.7390.
Japanese banks are buyers of UsdJpy this morning
though upside challenged at 124.50. There is an
interesting article that came out in Nikkei late last night
about meetings between BOJ Governor Kuroda and PM
Abe. These meetings are hushed and takes place
unannounced over lunch at PM Abes residence and
always ahead of G7 finance ministers meetings. This
year, G7 on Sept 4 in Turkey. As such, Japanese experts
are speculating Abe and Kuroda will likely meet later this
month. Nikkei said about 30% of economists surveyed
said the BOJ would implement additional easing around
October 2015. I heard buy orders are at 124.00-15 and
some chatter of bids linked to corporate names 123.6590.

Asians
Usd was touch firmer at the Asia open but softer post
CNY fix.
One UK bank was good buyer of UsdThb from 35.55 up
to 35.62. Someone paid 35.685 by mistake. Agent banks
were sellers after that and suppresses Usd to 35.52.
Some said overnight incident in Bangkok, where bomb
went off in front of Erawan Shrine, caused higher
funding for Thb thus pushed UsdThb higher. Definitely,
that was not one of the reasons this morning.
Thailands SET fell 2.7% on open following bomb blast in
Bangkok.
PBOC fixed the central parity rate at 6.3966, this is in
line with the previous onshore spot close. Onshore,
which closed at 6.3947, opened lower and dipped to
6.3860. Into late morning, onshore USDCNY popped to
above 6.4000 some said it was onshore/offshore
arbitraging. USDCNH turned around to 6.4420.

Toronto left UsdCad at 1.3088 and it has climbed up to

1.31-handle in thin market. Our traders like UsdCad
higher given the pressure on the Western Canada Select
Crude, which is trading at $19 discount to WTI. For
short term stop, should be at 1.2990 while long term
below 1.2950. Their target is 1.35. Buy orders are listed
beneath 1.3075; not great deal. Offers above 1.3175.

UsdSgd touch softer from open and it wasnt from agent

banks. Usd flowed with rest of Asia but into midmorning, we witnessed corporate selling from above
1.4080. Good offers are said to be placed above 1.4090,
from you-know-who and tech funds have bought on
dips today and will continue to low-1.40s.

Aussie is stuck. Even with release of RBA Aug minutes,

slightly upbeat on the domestic economy, AudUsd went

Sentiment for Malaysian Ringgit hasnt changed this

morning. There was a report from Business Times that

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.

Malaysian Trade Minister Mustapa Mohamed said Bank

Negara Malaysia, Finance Ministry and Economic
Planning Unit will come up with appropriate measures
to alleviate challenges affecting Myr. However, no
further details were given. Onshore spot UsdMyr stayed
above 4.1000 small bond related outflows reported.

Who said what

Shanghai Sec News: PBOC advisor Fan Gang said
Chinas economic growth may remain low
RBA August Minutes: Non-mining investment to da
RBA August Minutes: Aud depreciation to impart
economic stimulus
RBA August Minutes: Accommodative policy remained
appropriate
RBA August Minutes: Domestic economy has been
more positive in recent months
RBA August Minutes: Inflation is seen consistent with
target in forecast period
S&P: Pegging the ringgit to counter the weakening
currency trend will be expensive for Malaysia
Thailand: SET falls 2.7% on open

News & Data

Australia ANZ Roy Morgan Weekly Consumer
Confidence Index 113.2 from 112.5
China July Property Prices rise in 31 cities versus 27 in
June
FT: Carlyle considers shutting $4bn credit hedge
fund
Carlyle is considering shutting its $4bn credit hedge
fund Claren Road after investors asked to pull almost
half of their money out. The fund, founded a decade ago
by four star traders from Citigroup, is down 5.6 per cent
this year, in large part because of losses on its energy and
mining sector investments and on Greece.
http://www.ft.com/intl/cms/s/0/a43d0568-452a-11e5b3b2-1672f710807b.html?ftcamp=published_links
%2Frss%2Fcompanies%2Ffeed%2F
%2Fproduct#axzz3j0R1lk6c
FT: Shell wins go-ahead for Arctic drilling
Royal Dutch Shell has been granted the last permit it
needs to drill into possible oil reserves in the Arctic,
raising its hopes of being able to make a significant
discovery in one of the industrys most challenging
frontier regions. The US Bureau of Safety and
Environmental Enforcement, the offshore regulator, on
Monday afternoon awarded Shell a permit to drill into
oil-bearing rocks at the Burger J well in the Chukchi Sea
off the north-west coast of Alaska.
http://www.ft.com/intl/cms/s/0/4efba41e-4517-11e5b3b2-1672f710807b.html#axzz3j0R1lk6c

CNN: 'Potential security event' reported at South

Carolina nuclear site
Authorities triggered an emergency response on Monday
-- including barring all incoming traffic -- at a South
Carolina nuclear site because of what was described as "a
potential security event." The Savannah River Site,
which is affiliated with the U.S. Department of Energy
and National Nuclear Security Administration,
announced the precautions via Facebook around 3:42
p.m.
http://edition.cnn.com/2015/08/17/us/south-carolinanuclear-site-security-incident/index.html
Nikkei: Markets await next Abe-Kuroda meeting
Since PM Shinzo Abe took office in December 2012, he
and the BOJ chief have held six so-called "Abe-Kuro
meetings" at the prime minister's official residence. They
have taken place unannounced, and their hush-hush
nature has had market players guessing. Many of the
meetings have come just before or after a Group of Seven
summit or a meeting of the G20 finance ministers and
central bank chiefs. There is a market speculation that
Abe and Kuroda will likely meet later this month. When
asked about when and what the BOJ might do with its
monetary policy, about 30% of economists surveyed said
the BOJ would implement additional easing around
October 2015.
http://asia.nikkei.com/PoliticsEconomy/Economy/Markets-await-next-Abe-Kurodameeting
Alan Greenspan in FT: Higher reserves are a less
painful way to fix the banks
Lawmakers and regulators, given elevated capital
buffers, need to be far less concerned about the quality of
the banks loan and securities portfolios since any losses
would be absorbed by shareholders, not taxpayers. This
would enable the Dodd-Frank Act on financial regulation
of 2010 to be shelved, ending its potential to distort the
markets a potential seen in the recent decline in
market liquidity and flexibility. Well-capitalised banks
need to be less fettered in their primary economic
function: to assist in the directing of the nations scarce
savings to fund our most potentially productive
investments. Funding cutting-edge capital investments
will engender growth in national productivity and
standards of living.
http://www.ft.com/intl/cms/s/0/4d55622a-44c8-11e5af2f-4d6e0e5eda22.html#axzz3j0R1lk6c
Telegraph: Greek government on its 'last legs'
while Angela Merkel faces growing rebellion in
Berlin
Greek MPs are poised to hold a vote of confidence in the
government of Alexis Tsipras after Leftist party rebels
deserted the prime minister over the punishing terms of

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.

a third international bail-out agreement. Syriza's energy

minister Panos Skourletis said it was now "self-evident"
that parliamentarians would decide on whether or not to
continue supporting the government after a "deep
wound" had been inflicted on the ruling coalition.
Should he fail to win majority backing from Greece's 300
MPs, Mr Tsipras is almost certain to hold a snap
election.
http://www.telegraph.co.uk/finance/economics/118070
76/Greek-government-on-its-last-legs-while-AngelaMerkel-faces-growing-rebellion-in-Berlin.html
Kathimerini: Tsipras not set to rush decision on
snap elections
Prime Minister Alexis Tsipras is due to meet with his
economic policy team to decide the actions the
government must take in the coming weeks as part of its
bailout commitments, which could deter the premier
from moving swiftly to trigger snap elections.
Government sources suggested on Monday that Tsipras
first wants to discuss with his economic team how the
first tranche of Greeces third bailout, which was passed
through Parliament on Friday and then rubber-stamped
by eurozone finance ministers, will be disbursed.
http://www.ekathimerini.com/200637/article/ekathime
rini/news/tsipras-not-set-to-rush-decision-on-snapelections
FT: Banks braced for billions in civil claims over
forex rate rigging
Global banks are facing billions of pounds-worth of civil
claims in London and Asia over the rigging of currency
markets, following a landmark legal settlement in New
York. Barclays, Goldman Sachs, HSBC and Royal Bank
of Scotland were among nine banks revealed last Friday
to have agreed a $2bn settlement with thousands of
investors affected by rate-rigging in a New York court
case.
http://www.ft.com/intl/cms/s/0/3b19f516-44e2-11e5af2f-4d6e0e5eda22.html#axzz3j0R1lk6c

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.