Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the USD chops around before and after the soft U.S. NFP data. PHP saw the largest gains of 0.56%, followed by TWD 0.44%, THB 0.43%, IDR 0.21%, MYR 0.18%, INR 0.04%; the biggest losers are SGD 0.2%, CNY 0.13%, CNH 0.07%, KRW and HKD 0.03%.

USD/CNH is trading higher at 7.0948 from 7.0899 previously closed. Onshore spot USD/CNY is trading higher at 7.0980 from 7.0887 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 6.9101 compared 6.9053 to previously closed.

USD/IDR spot market is trading lower at 15378 from 15401 previously closed. 1 month NDF is trading higher at 15478 from 15421 previously closed.

USD/INR onshore spot market is trading lower at 83.94 from 83.98 previously closed. 1 month NDF is trading lower at 84.07 from 84.08 previously closed.

North America Session

The US non-farm payroll rose by a slightly weaker than expected 142k with a significant 86k in net negative revisions. However unemployment corrected lower to 4.2% from 4.3% and average hourly earnings were above consensus with a 0.4% increase. The USD initially dipped before rebounding and eventually finished mixed, with the riskier currencies underperforming.

USD/JPY slipped from above 143 to 142 on the data before rebounding to 144, eventually settling slightly below 142.50. EUR/USD was little changed, but finished marginally below 1.11 after being marginally above before the data. EUR was stronger versus the GBP and weaker versus the CHF.

Canadian employment saw a near consensus 22.1k increase but with full time work falling, unemployment rising to 6.6% from 6.4% and wage growth slower the detail was weak. USD/CAD picked up above 1.3550 from 1.35 though AUD/CAD ended weaker near .9050 after initially bouncing above .91 on the data.

Fed’s Williams and Waller both stated that easing was now appropriate. Williams gave no view on by how much, needing to look more at the data. Waller was quite dovish, seeing the balance of risk shifting towards employment and suggesting he was ready to ease aggressively should data weaken further, but appeared to favor moving by 25bps in September.