Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD as the greenback continue to be strong after digesting the U.S CPI report. KRW saw the largest losses of 0.68%, followed by TWD and THB 0.65%, CNH 0.04%, HKD 0.03% and PHP 0.02%; the only winners are CNH 0.09% and SGD 0.05%.

USD/CNH is trading lower at 7.2558 compared to the 7.2624 at previously closed. Onshore spot USD/CNY is trading higher at 7.2370 from 7.2343. 12 month NDF followed the onshore market and is trading lower at 7.0439 compared to 7.0466 previously closed.

USD/IDR spot market is trading lower at 15893 from 15920 previously closed. 1 month NDF is trading higher at 15914 from 15941 previously closed.

USD/INR onshore spot market is closed. 1 month NDF is trading lower at 83.41 from 83.42 previously closed.

NA Session

The USD ended little changed after a choppy session. The EUR saw a modest dip on the ECB announcement of unchanged policy, with the statement suggesting that it could be appropriate to reduce the current level of policy restriction, and dropping language about maintaining rates for a sufficiently long time. EUR/USD fell around 15 pips though EUR/CHF fell 40 pips to .9750.

The EUR/USD dip was soon more than reversed as the USD slipped on a modest 0.2% rise in March’s PPI, both in the headline and core rates, even with initial claims lower at 211k from 222k. USD strength subsequently resumed, probably supported by what was generally hawkish Fed talk, most clearly from Barkin, with Williams earlier and Collins later more balanced, though still disappointed with recent CPI data. EUR/USD fell from a high of 1.0757 to touch 1.07 before recovering to mid-range as equities built gains. 

The USD ended slightly firmer versus the JPY but slightly weaker versus the AUD and GBP. USD/CAD ended little changed. USD/CHF ended weaker as the CHF largely sustained its post-ECB gains.