Asia Open - Overnight Highlights

EMERGING ASIA

Most EM currencies are trading higher against the greenback as risk appetite returns strong. The only loser is INR by 0.37%; while the biggest winner is TWD by 3.82%, followed by KRW 1.66%, MYR 1.39%, THB 1.07%, IDR 1.01%, SGD 0.97%, CNH 0.91%, PHP 0.49% and HKD 0.09%.

USD/CNH is trading lower at 7.2130 from 7.2789 previously closed. Onshore spot market is closed. 12 month NDF followed both the on/offshore market and is trading lower at 7.0431 compared to 7.0992 previously closed.

USD/IDR spot market is trading lower at 16438 from 16577 previously closed. 1 month NDF is trading lower at 16488 from 16627 previously closed.

USD/INR onshore spot market reopened higher at 84.54 from 84.49. 1 month NDF is trading lower at 84.79 from 84.86 previously closed.

NA Session

The US non-farm payroll was stronger than expected with a 177k April increase, though 58k in negative back month revisions weighed against the headline surprise, and average hourly earnings were weaker than expected with a rise of 0.2%. Unemployment was unchanged at 4.2% as expected.  

While UST yields rose significantly and equities advanced, the FX response to the data was limited. Mid-morning did see some USD slippage, but this was largely reversed, with USD/JPY slightly firmer near 145 and EUR/USD slightly weaker near 1.1310. The USD did however see marginal slippage versus AUD and CAD.