Asia Open - Overnight Highlights
EMERGING ASIA
EM currencies perform most stronger against the USD as the greenback was weak throughout the Asia and London session before rebounding from the stronger revision in U.S. GDP. MYR saw the largest gains of 0.77%, followed by CNH 0.54%, CNY 0.44%, KRW 0.36%, THB 0.17%, TWD 0.16%, INR 0.11%, IDR 0.06%, HKD 0.04% and SGD 0.03%; while the only loser is PHP by 0.08%.
USD/CNH is trading lower at 7.0943 from 7.1329 previously closed. Onshore spot USD/CNY is trading lower at 7.0970 from 7.1278 previously closed. 12 month NDF followed both the on/offshore market and is trading lower at 6.9064 compared 6.9410 to previously closed.
USD/IDR spot market is trading higher at 15424 from 15422 previously closed. 1 month NDF is trading higher at 15469 from 15450 previously closed.
USD/INR onshore spot market is trading lower at 83.86 from 83.96 previously closed. 1 month NDF is trading lower at 83.96 from 84.03 previously closed.
North America Session
The USD bounced on an upward revision to Q2 US GDP to 3.0% from 2.8%, but most of the gains were erased by the close. USD/JPY saw the strongest bounce, peaking at 145.55 from around 144.65 before the data, before slipping back to around 144.85. EUR/USD slipped to 1.1075 from near 1.11 before the data, after bottoming at 1.1056. EUR/GBP saw little change but EUR/CHF rose to .9380 from .9360, after a peak at .94. AUD/USD saw marginal slippage to near .68 while USD/CAD edged up to 1.3485 with a fading of equity gains weighing on the commodity currencies.
The upward revision to GDP was more than fully explained by consumer spending, which was revised up to 2.9% from 2.3%, with most other components revised down, as was the core PCE price index, to 2.8% from 2.9%. July’s advance goods trade deficit increased to $102.7bn frim $96.6bn while initial claims were little changed at 231k from 233k. Later July pending home sales saw a sharp 5.5% decline.