Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly stronger against the USD as the greenback chops around on Trump's tariff policy changes. The biggest winners are CNH by 0.51%, followed by CNY 0.41%, PHP & SGD 0.29%, MYR 0.22%, INR 0.14%, TWD 0.11% and KRW 0.07%; while the largest losers are IDR 0.4%, THB 0.04% and HKD by 0.02%.

USD/CNH is trading lower at 7.2268 from 7.2634 previously closed. Onshore spot market is trading lower at 7.2302 from 7.2600 previously closed. 12 month NDF followed both the on/offshore market and is trading lower at 7.0662 compared to 7.0870 previously closed.

USD/IDR spot market is trading higher at 16405 from 16340 previously closed. 1 month NDF is trading higher at 16472 from 16413 previously closed.

USD/INR onshore spot market is trading lower at 87.21 from 87.33 previously closed. 1 month NDF is trading lower at 87.43 from 87.59 previously closed.

NA Session

A Trump announcement that steel and aluminium tariffs on Canada would be doubled to 50% in response to Ontario’s’ 25% surcharge on electricity exports to the US sent USD/CAD surging above 1.45 from 1.4415, and sent equities lower, but was reversed when Ontario Premier Ford agreed to suspend the surcharge after a conversation with US Commerce Secretary Lutnick. USD/CAD fell back to 1.44 while equities recovered, supported also by Ukraine agreeing to a 30-day ceasefire in return for renewed US aid, though Russia’s response is still awaited. 

After an early move above 148 USD/JPY fell to near 147 as equities slipped, before recovering to 147.70. AUD/USD was firm, moving above .63. EUR/USD saw limited movement but held firm above 1.09. GBP/USD nudged above 1.2950. US data had little impact. February’s NFIB small business optimism index fell to 100.7 from 102.8 but January job openings were stronger than expected with a rise of 248k.