Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading individually against the greenback as market participants digest all the headlines for the week. The biggest losers are INR 0.62%, KRW 0.40%, CNH 0.07%, SGD & CNY 0.05% and THB & MYR 0.04%; while the largest winners are PHP by 0.20% TWD 0.06% and HKD 0.01%.

USD/CNH is trading higher at 6.9678 from 6.9632 previously closed. Onshore spot market is trading higher at 6.9703 from 6.9671. 12 month NDF followed both the on/offshore market and is trading higher at 6.8453 from 6.8440 previously closed.

USD/IDR spot market is trading lower at 16887 from 16896 previously closed. 1 month NDF is trading higher at 16924 from 16903 previously closed.

USD/INR onshore spot market is trading higher at 90.86 from 90.29 previously closed. 1 month NDF is trading higher at 90.95 from 90.61 previously closed.

NA Session

The USD received a lift along with front end UST yields when Trump stated that Kevin Hassett, who had been the favorite to be nominated as the next Fed Chair, might remain in his current position as director of the NEC. This led markets to see a reduced threat to Fed independence. Later Fed Governor Bowman, also on the shortlist for Chair, expressed dovish views. US data had little impact December industrial production was stronger than expected with a rise of 0.4% but January’s NAHB homebuilders’ index unexpectedly slipped to 37 from 39.

EUR/USD fell from a high of 1.1627 to a low of 1.1585 before correcting to near 1.16. USD/JPY however was little changed near 158. Before Trump’s remarks, AUD/USD had already edged below 0.67 and USD/CAD had edged below 1.39. The moves were modestly extended after Trump spoke.png