· USDMYR took out the 3.0500 support level in a blink and opened this morning heading lower, currently trading at 3.0250 and market seems to be very inclined to sell on rally. We expect market will try and test 3.0000, let’s wait and see how things progress today. Expected trading range today 3.0000-3.0500.
· For those who are looking to buy SGD and AUD against MYR, good time to buy, SGDMYR at 2.4450 and AUDMYR at 3.1700. Just to touch a little on SGD, the upcoming MAS meeting will likely see MAS leave the SGD NEER (nominal effect exchange rate) unchanged both the slope and the band and will be bias to allow SGD to appreciate further.
· Asia time we reckon some focus will be given to North Korea and see if they decide to finally action instead of just talk, if you ask us it’s all just a show and they are unlikely to launch any missiles. Market pretty much have the same sentiment as not much movement despite all the news….that’s of course until we
· Mood is still upbeat in general in markets as Equities continue to do well. Eurostoxx +0.23% with peripheral EU mkts rallying hardest. The S&P +0.35%. the Dow +0.45% after putting in a new intraday high.
· Equities took an early turn south on Der Spiegel saying Greek savers could be subject to Cypriot style haircuts. The Greek FinMin was forced to declare deposits safe, mkts settled/recovered
· The JPY took a breather after 3 straight days of depreciation. Settling around the 99 area. Yesterday, several banks officially revise Q4 2013 targets to around 104-105.
· The US NFIB Small Biz Survey was just under expectation. The amount of biz owners expecting better conditions in the next 6 months remains in negative territory. According to survey the outlook for labour, sales & inventories is weaker while there is positivity in the earnings & credit conditions segments.
· RBA Board Member Edwards: “High AUD doesn’t require policy response”, AUDUSD seems well supported but market conviction seems low on the pair.
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