USD/HKD Down; Local Stock Cues Eyed, 7.7610 Support

The USD/HKD extends losses after China's positive GDP data Tuesday and the recent strength in local stocks, says a senior trader at a local bank. The pair is at 7.7634 from 7.7651 this morning and 7.7662 late Tuesday. The HSI is up 0.05% after a 3.2% gain Tuesday. "The weaker U.S. dollar offshore is weighing on the pair, and I expect the pair to hover between 7.7610-7.7650 band in the near term. If the local stocks continue to rise, it will push down the pair further in the near term," the trader says.