Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as major equity index retreats after an upbeat earlier session. The biggest winners are TWD by 0.40%, THB 0.37%, CNH & PHP 0.02% and SGD by 0.01%; the largest loser are IDR by 0.24%, INR 0.22%, KRW 0.17%, MYR 0.09% and HKD by 0.01%.

USD/CNH is trading lower at 7.3469 from 7.3487 previously closed. Onshore spot market is trading lower at 7.3316 than 7.3318 previously closed. 12 month NDF followed both the on/offshore market and is trading lower at 7.1789 compared to 7.1818 previously closed.

USD/IDR spot market is trading higher at 16376 from 16326 previously closed. 1 month NDF is trading higher at 16421 from 162394 previously closed.

USD/INR onshore spot market is trading higher at 86.55 from 86.36 previously closed. 1 month NDF is trading higher at 86.84 from 86.70 previously closed.

NA Session

December US retail sales with a 0.4% increase were on the low side of expectations while initial claims bounced to 217k from 203k. However, January’s Philly Fed manufacturing index surged to a very strong 44.3 from -10.9 and there was little reaction to the data. The USD did slip on dovish comments from Fed’s Waller, who expressed optimism on inflation and saw 3-4 easings this year as possible. USD/JPY fell to 155.20 from above 156 while EUR/USD saw highs above 1.03 before correcting to near the figure and EUR/GBP corrected lower to around .8420. 

USD/CAD was an exception to the softer USD picture, touching 1.44 both before and after BoC’s Gravelle stated that QT would end in the first half of 2025. AUD/USD and AUD/CAD saw only marginal gains.