Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the greenback retraces partial post CPI gains after softer than expected U.S. retail sales figure. SGD saw the largest gains of 0.20%, followed by PHP 0.13%, KRW 0.10%, CNH 0.09% and MYR 0.08%; the biggest loser is TWD by 0.23%, IDR 0.16%, THB 0.12%, INR 0.02% and HKD 0.01%.

USD/CNH is trading lower at 7.2176 compared to the 7.2243 at previous close. Onshore spot USD/CNY is closed to observe Lunar New Year. 12 month NDF diverged from the onshore market and is trading higher at 7.0203 compared to 7.0181 previous closed.

USD/IDR spot market reopened higher at 15623. 1 month NDF is trading higher at 15649 from 15583 previous closed.

USD/INR onshore spot market is trading higher at 83.04 from 83.02. 1 month NDF is trading lower at 83.08 from 83.11 previously closed.

NA Session

The USD fell back through the North American session following weaker than expected retail sales data. A brief USD recovery in mid-session faded in the afternoon. Retail sales fell 0.8% headline, 0.6% ex autos, and while some of the weakness may have been due to weather, it was enough to pit the USD on the back foot, mainly against the riskier currencies. USD/CAD saw the biggest move, falling over half a figure to 1.3470, while EUR/USD moved up around 35 pips to 1.0770. GBP/USD more than reversed earlier losses, testing 1.26. USD/JPY initially dipped, but finished not much changed. 

Other US data released with retail sales, the Philly Fed survey, NY Empire state survey and jobless claims data were stronger than expected and moderated the impact of retail sales. Later industrial production with a 0.1% decline, with manufacturing down by 0.5%, was weaker than expected with bad weather cited, but the NAHB homebuilders’ index extended its recent recovery above expectations.