Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly stronger against the USD as the greenback remain low after headline NFP beats estimates but details lacking. IDR saw the largest gains of 0.33%, followed by IDR 0.32%, SGD 0.24%, THB 0.14%, PHP 0.11%, CNH  0.07%, IDR, KRW and MYR 0.01%; the biggest losers are TWD and HKD 0.04%.

USD/CNH is trading lower at 7.2889 from 7.2939 previously closed. Onshore spot USD/CNY is trading higher at 7.2684 than 7.2682 previously closed. 12 month NDF followed the offshore market and is trading lower at 7.0770 compared 7.0840 to previously closed.

USD/IDR spot market is trading lower at 16278 from 16330 previously closed. 1 month NDF is trading lower at 16265 from 16357 previously closed.

USD/INR onshore spot market is trading unchanged at 83.49. 1 month NDF is trading lower at 83.54 than 83.58 previously closed.

NA Session

June’s non-farm payroll was slightly stronger than expected in the overall gain of 206k, but with significant negative back month revisions of 111k, while private sector payrolls rose by a weaker than expected 136k. With average hourly earnings up a moderate on consensus 0.3% and unemployment up to 4.1% from 4.0% the report is consistent with some loss of labor market momentum.

The USD made brief moves in both directions on the data before slipping later in the session. GBP/USD extended its post-election gains to 1.2815 while EUR/USD was marginally firmer near 1.0840. AUD/USD also made modest gains.  USD/CAD however finished up around 20 pips near 1.3635 with Canada’s employment report weaker than expected, down by 1.4k with unemployment up to 6.4% from 6.2%, though wages were stronger than expected. USD/JPY was little changed near 160.75. 

The Fed released its Monetary Policy Report ahead of Powell’s testimonies to Congress due on Tuesday and Wednesday, which reiterated greater confidence that inflation is moving sustainably towards target is needed before easing.