Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD despite the greenback weakens significantly in the New York session on potential escalation of geopolitical tension. MYR saw the largest gains of 0.33%, followed by IDR 0.17%, PHP and KRW 0.14%; the only losers are SGD 0.03%, THB 0.02%, CNH and INR 0.01%.

USD/CNH is trading higher at 7.2492 compared to the 7.2488 at previously closed. Onshore spot USD/CNY is closed to observe a holiday. 12 month NDF followed the offshore market and is trading higher at 7.0429 compared to 7.0345 previously closed.

USD/IDR spot market is trading lower at 15893 from 15920 previously closed. 1 month NDF is trading lower at 15914 from 15941 previously closed.

USD/INR onshore spot market is trading higher at 83.44 from 83.43 previously closed. 1 month NDF is trading lower at 83.55 from 83.57 previously closed.

NA Session

The USD saw a volatile North American session, particularly late in the session on talk of a potential near term Iranian attack on Israel. This hit stocks and UST yields, the UST move led by the front end despite the day’s Fed speak having been somewhat hawkish, particularly Kashkari who said the Fed might not ease this year, while others cautioned about recent strong data and the need for caution over easing. 

USD/JPY fell by over 50 pips below 151.20 but risk off trading saw USD/CAD bounce from around 1.35, already off its lows, to above 1.3550, while AUD/USD slipped back to .6585 from highs near .6620. 

EUR/USD and GBP/USD more than fully reversed modest early gains triggered by US data, when initial claims rose to 221k from 212k and the trade deficit increased to $68.9bn in February from $67.6bn in January.  EUR/CHF erased gains seen after the Swiss CPI while USD/CHF completed a reversal of its earlier gains.