Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD with the broad risk sentiment rebounds from earlier drop. The biggest winner is MYR by 0.38%, followed by SGD 0.36%, INR 0.18%, HKD 0.02% and PHP 0.01%; while the largest losers are KRW by 0.42%, followed by TWD 0.12%, CNH 0.07%, THB 0.06%, IDR 0.03% and CNY 0.02%.

USD/CNH is trading higher at 7.2900 from 7.2850 previously closed. Onshore spot market is trading higher at 7.2889 from 7.2871 previously closed. 12 month NDF diverged from both the on/offshore market and is trading lower at 7.1024 compared to 7.1030 previously closed.

USD/IDR spot market is trading higher at 16873 from 16872 previously closed. 1 month NDF is trading lower at 16803 from 16871 previously closed.

USD/INR onshore spot market is trading lower at 85.26 from 85.42 previously closed. 1 month NDF is trading lower at 85.45 from 85.67 previously closed.

NA Session

While equities advanced and UST yields fell, it was a subdued session in FX, with the USD for the most part stable but seeing some late losses. EUR/USD advanced to near 1.14. In the risk-on environment EUR edged lower versus GBP but advanced versus CHF. AUD/USD edged above 0.64 but USD/CAD rose to test 1.39 before reversing, leaving AUD/CAD firmer at .8875. USD/JPY ended near 142.50 after rising to 142.80 from 142.30. 

US data had limited impact. Durable goods orders surged 9.2% led by aircraft but ex transport orders were unchanged. Initial claims rise to 222k from 216k but remain low. Existing home sales fell sharply by 5.9% to 4.02m. Fed commentary was mildly dovish with Waller stating he would back easing if tariffs led to job losses and Hammack open to a policy shift in June if data justified it.