Market Update - 22 April 2013

• USDMYR opened a touch higher at 3.0400 because it seems market is viewing that the candidates for the upcoming election seems weak and some resignations from UMNO senior ranks further added uncertainty within the main camp.

• The range for the week expected to be around 3.0100-3.0600 as I reckon the pair should be range trading will 5^th May 2013.

• Asian currencies still continue to be on the strong footing as CNY fixing lower everyday lending strength to Asian currencies.

• AUDMYR looks very attractive at the moment at 3.1200 and we could see 3.1100-3.1000 as there are talks of a large market position globally pushing AUDUSD lower.

• G20 meeting was the highlight of the weekend but we had nothing much major coming out of the headlines.

• The focus was of course Japan, “We will be mindful of unintended negative side effects stemming from extended periods of monetary easing”. Neither Japan nor the JPY were singled out specifically in the G20 communique, an outcome most had expected.

• USDJPY looking to break 100.00 this week and I feel strongly it will break but not power through this level as market will be weary of overbought activities as well as potential risk off in global markets given the recent iffy data.
• 
  Expecting a quiet day ahead with little news or data and neither the G10s or EMs seeing firm conviction to trade any pair except USDJPY and EURUSD.