Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly individually against the greenback as USD chops on Trump/Powell fiasco. The biggest losers are TWD 0.36%, followed by IDR and PHP 0.06%; while the largest losers is KRW by 0.5%, SGD 0.27%, CNH 0.16%, CNY 0.1% and MYR 0.06%.

USD/CNH is trading lower at 7.1849 from 7.1965 previously closed. Onshore spot market is trading lower at 7.1814 from 7.1888. 12 month NDF followed both the on/offshore market and is trading lower  at 7.0230 from 7.0303 previously closed.

USD/IDR spot market is trading higher at 16289 from 16274 previously closed. 1 month NDF is trading lower at 16265 from 16312 previously closed.

USD/INR onshore spot market is trading higher at 87.70 from 87.66. 1 month NDF is trading lower at 87.75 from 87.79 previously closed.

NA Session

US CPI was as expected at 0.2% overall, 0.3% ex food and energy, though the latter was on the firm side at 0.32% before rounding. The acceleration was led by services, notably air fares, rather than tariffed goods. Subsequent Fed talk was far from dovish, with Barkin stating the balance of risks was still unclear and Schmid saying that restrictive policy was appropriate for the time being. Markets took more notice of a threat from Trump to sue Chairman Powell over the cost of Fed building renovations, which lifted long end yields and helped to extend USD losses, though equities were firm. 

USD/JPY fell to 147.75 from 148.50 while EUR/USD advanced to peak near 1.17 from 1.16 before correcting to 1.1675. EUR/GBP reversed most of its European losses recovering to .8650. AUD/USD rose to .6530 from .6485 while AUD/CAD came close to .90 from .8950.