Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD as the greenback reversed previous traction along with reversal in the equity spaces. MYR saw the largest losses of 1.06%, followed by THB 0.85%, KRW 0.65%, CNH 0.29%, CNY 0.23%, TWD 0.16%, INR 0.14%, HKD 0.08% and SGD 0.02%; the biggest losers are IDR 0.21% and PHP 0.11%.

USD/CNH is trading higher at 7.1590 from 7.1385 previously closed. Onshore spot USD/CNY is trading higher at 7.1557 from 7.1396 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 6.9620 compared 6.9538 to previously closed.

USD/IDR spot market is trading lower at 16165 from 16189 previously closed. 1 month NDF is trading lower at 16175 from 16225 previously closed.

USD/INR onshore spot market is trading higher at 83.96 from 83.84 previously closed. 1 month NDF is trading lower at 84.04 from 84.10 previously closed.

NA Session

Equities saw a significant bounce which lifted the commodity currencies, AUD/USD to .6530 from .6470 while USD/CAD fell to 1.3770 from 1.3840. USD/JY rose to near 145 from near 144. EUR/USD saw only modest gains to 1.0930 after finding support above 1.09. Neither EUR/GBP nor EUR/CHF saw much movement in North America, though the former sustained European gains and the latter sustained European losses. 

There was not much in the way of data. June’s US trade deficit narrowed to $73.1bn from $75.0bn but was slightly wider than expected. Canada recorded an unexpected June trade surplus of C$0.64bn, versus a C$1.61bn deficit in May. Kamala Harris chose Minnesota Governor Tim Walz as her running mate, who is seen as a little to the left than most of the names on her shortlist.