Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the greenback followed the post CPI drop initially before rebounding in the New York session. KRW saw the largest gains of 1.79%, followed by THB 1.09%, IDR 0.65%, TWD 0.61%, MYR 0.5%, PHP 0.12% and HKD 0.11%; the biggest losers are CNH 0.07%, SGD 0.06% and CNY 0.03%.

USD/CNH is trading higher at 7.2227 compared to the 7.2179 at previously closed. Onshore spot USD/CNY is trading higher at 7.2214 from 7.2190 previously closed. 12 month NDF diverged from both the on/offshore market and is trading lower at 7.0128 compared to 7.0147 previously closed.

USD/IDR spot market is trading lower at 15924 from 16028 previously closed. 1 month NDF is trading higher at 15936 from 15928 previously closed.

USD/INR onshore spot market is trading unchanged at 83.49. 1 month NDF is also trading higher at 83.56 from 83.51.

NA Session

The USD advanced early in the session, but corrected against most currencies leaving the USD little changed against most pairs, EUR/USD returning to 1.0870. USD/JPY however briefly reached 155.50, with only a modest subsequent correction to 155.30, leaving it firmer on the session. CHF was also weaker, EUR/CHF rallying from lows below .98 to .9840 and USD/CHF up from .90 to .9050.

US data was generally close to expectations, and consistent with some slowing in the economy, though UST yields moved higher. Initial claims corrected lower by 10k to 222k, April housing starts rose 5.7% after a 16.8% March decline but permits saw a 3.0% decline to follow a fall of 5.0%. May’s Philly Fed manufacturing index slipped to 4.5 from 15.5 while April industrial production was unchanged.