Here's a quick update on our Asia Currencies & Commodities views in partnership with @SGX, so you can keep an update on the markets that matter🐝
[1a] #China: policy easing continues. The PBoC became the first central bank to cut rates in 2022 with a 10bps cut in the one-year medium-term lending facility (MLF) to 2.85%. This was the first cut since the height of the Covid stress in March 2020. Yet $CNH remains stable.
[1b] We remain neutral on CNH given that the ongoing C/A surplus and equity inflows are offsetting declining yield support. 
[2] We think our long SGX $KRW/USD futures recommendation has further to run with an increasingly hawkish BoK and improved foreign equity inflows.
[3] We remain bearish on the rupee $INR with further Covid restrictions and still-elevated oil prices, retaining our short SGX INR/USD futures (XIDF2, Feb22).
[4] USD/TWD (New Taiwan dollar) has yet to decisively break through 27.6. And with CBC intervention likely to continue, we remain neutral.
[5] S$NEER has continued to strengthen. With domestic equity strength, ongoing reopening and elevated inflation, we remain bullish and stay short USD/SGD by selling the SGX USD/SGD minis (XSDG2, Feb22) #Singapore
[6] On commodities: #iron ore settles into a $120s/tonne range; in our last report, we favoured long iron ore futures positions (SCOG2, Feb22). The trade is up 5% over the past two weeks, and we continue to hold it. Also, #coal bounces back above $700/tonne.
[7a] Those expecting the global economy to slow going forward should continue to look to #copper, which remains stuck in the same elevated range it has occupied for about a year. That this has occurred alongside huge swings in other industrial commodity prices is unusual.
[7b] #Copper therefore appears to have much more potential downside if the activity data begin to confirm that a general global slowdown is materialising.
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For the full report of the latest edition on @SGX's website, see here: sgx.com/research-educa…
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