Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading individually against the greenback as USD loses significantly in the aftermaths of Trump's tariff and weak employment. The biggest losers are THB 0.55%, followed by TWD 0.49%, MYR 0.33% and IDR by 0.23%; while the largest winner is SGD by 0.64%, KRW 0.3% PHP 0.27%, CNH 0.21%, CNY 0.09% and INR 0.08%.

USD/CNH is trading lower at 7.1938 from 7.2091 previously closed. Onshore spot market is trading lower at 7.1933 from 7.2000. 12 month NDF followed both the on/offshore market and is trading lower at 7.0269 from 7.0303 previously closed.

USD/IDR spot market is trading higher at 16513 from 16456 previously closed. 1 month NDF is trading lower at 16390 from 16504 previously closed.

USD/INR onshore spot market is trading lower at 87.55 from 87.60. 1 month NDF is trading lower at 87.35 from 87.66 previously closed.

NA Session

The USD fell sharply on the US employment report, which was weaker than expected with a 73k increase in July, and most significantly net downward revisions of 258k which left job growth in May and June as minimal. Unemployment edged up to 4.2% from 4.1% and average hourly earnings rose by 0.3% as expected. Later July’s ISM manufacturing index slipped to 48.0 from 49.0, but has little market impact. The resignation of Fed hawk Kugler helped extend USD losses in late trade. 

USD/JPY plunged below 147.50 from near 150.50 while EUR/USD rose to 1.1575 from near 1.14 as UST yields fell sharply, particularly at the front end. Riskier currencies were restrained by equity weakness but still advanced versus the USD. EUR/GBP rose above .87. AUD/USD ended in midrange after having peaked just below 65 after rising from near .6420 before the data.