Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD despite the greenback being steady stronger. PHP saw the largest gains of 0.28%, followed by THB 0.22%, CNY 0.08%, CNH 0.06%; while the biggest loser is KRW by 0.47%, SGD 0.28%, IDR 0.26%, MYR 0.22% and TWD 0.12%.

USD/CNH is trading lower at 7.0900 from 7.0943 previously closed. Onshore spot USD/CNY is trading lower at 7.0913 from 7.0970 previously closed. 12 month NDF diverged from both the on/offshore market and is trading higher at 6.9088 compared 6.9064 to previously closed.

USD/IDR spot market is trading higher at 15455 from 15424 previously closed. 1 month NDF is trading higher at 15549 from 15469 previously closed.

USD/INR onshore spot market  is trading higher at 83.87 from 83.86 previously closed. 1 month NDF is trading lower at 83.94 from 83.96 previously closed.

North America Session

US July core PCE prices were as expected with a 0.2% increase, and subdued at 0.16% before rounding. Personal spending was also as expected with a 0.5% rise but personal income exceeded expectations with a rise of 0.3%, though still below that of spending. The USD advanced on the data which was seen as leaving little justification for a 50bps September easing. The initial USD bounce was partially corrected later in the morning, but the USD saw renewed gains in the afternoon, responding to higher UST yields.

USD/JPY moved above 146 from around 145.30 while EUR/USD fell to 1.1050 from 1.1085. EUR/GBP more than fully reversed European losses. AUD/USD fell to .6765 from .68 with AUD/CAD weaker after Q2 Canadian GDP exceeded expectations with a 2.1% annualized gain. However details showed the data less impressive outside strength in government and a brief dip in USD/CAD was not sustained. USD/CAD saw only marginal gains from around 1.3475 before the data, with two moves above 1.35 failing to hold.