Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly stronger against the USD as USD steadies after choppy trading on Friday. The biggest winners are THB with the largest gains of 0.74%, followed by IDR 0.55%, PHP 0.25%, KRW 0.23%, CNH 0.2%, CNY 0.14%, MYR 0.09%, SGD 0.06% and TWD by 0.02%; the biggest loser is INR by 0.11%, followed by KRW 0.57% and TWD 0.01%.

USD/CNH is trading lower at 7.0711 from 7.0849 previously closed. Onshore spot market is trading lower at 7.0667 from 7.0765 previously closed. 12 month NDF followed both the on/offshore market and is trading lower at 6.8989 compared to 6.9066 previously closed.

USD/IDR spot market is trading lower at 15578 from 15678 previously closed. 1 month NDF is trading lower at 15597 from 15703 previously closed.

USD/INR onshore spot market is trading higher at 84.07 from 83.97 previously closed. 1 month NDF is trading higher at 84.24 from 84.09 previously closed.

North America Session

US PPI data was a little softer than expected, unchanged overall and up 0.2% ex food and energy, but the USD’s dip quickly found buyers and the USD moved slightly higher, though USD/JPY and EUR/USD ended not far from pre-data levels around 149 and 1.0940 respectively. EUR/GBP and EUR/CHF saw little movement. October’s preliminary Michigan CSI partially reversed a rise in September.

USD/CAD saw a 60 pip dip to a low of 1.3725 on a stronger than expected 46.7k rise in Canadian employment, with unemployment falling to 6.5% from 6.6%, though the move was later corrected to near pre-data levels with wage growth having slowed to 4.5% from 4.9% yr/yr. The Bank of Canada’s quarterly business showed activity slightly less weak but inflation expectations significantly less strong. Despite the strong Canadian data AUD/CAD rose to near .93 as AUD/USD advanced above .6750.