ASEAN Currencies Lower Post NFP

 The offshore Chinese yuan slipped 0.5 percent,
giving back some of the sharp gains made last week, when it
gained about 1.8 percent in a record weekly rise. The onshore
yuan was steady on the day.
    The spurt in CNH last week was driven predominantly by a
jump in yuan borrowing costs offshore and tighter liquidity,
which helped trigger the unwinding of bullish bets on the
dollar. 
    "Despite some semblance of order emerging, we should expect
volatility to remain high," Stephen Innes, senior trader for FX
broker OANDA said in a note. 
    "I also expect that the underlying yuan depreciation
pressures should return as fundamental reasons that are driving
depreciation, such as capital outflows and concerns on Trump's
China policies...haven't changed," Innes wrote.
    Emerging Asian currencies have retreated broadly over the
past couple of months as U.S. bond yields jumped on expectations
that President-elect Donald Trump's proposals for infrastructure
spending and tax cuts will boost U.S. economic growth and
inflation. 
    Worries about Trump's stance on trade have also weighed on
Asian currencies. Trump has vowed to label China a currency
manipulator on his first day in office, and has threatened to
slap huge tariffs on imports of Chinese goods.

REUTERS

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Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes