Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading individually against the greenback as there is lack of major moving headlines. The biggest winner is IDR by 0.4%, followed by TWD 0.37%, PHP 0.09% and HKD 0.07%; while the largest loser is KRW 0.84%, followed by INR 0.42%, SGD 0.29%, THB c 0.1%, MYR and CNY 0.06%.

USD/CNH is trading higher at 7.2044 from 7.2041 previously closed. Onshore spot market is trading higher at 7.2056 from 7.2015. 12 month NDF followed both the on/offshore market and is trading higher at 7.0242 compared to 7.0233 previously closed.

USD/IDR spot market is trading lower at 16328 from 16399 previously closed. 1 month NDF is trading higher at 16380 from 16367 previously closed.

USD/INR onshore spot market is trading higher at 86.05 from 85.64. 1 month NDF is trading higher at 86.15 from 85.76 previously closed.

NA Session

US data was mostly on the firm side of expectations. Initial claims saw a marginal dip to 227k from 229k, while S and P PMIs increased, both manufacturing and services to 52.3, from 50.2 and 50.8 respectively. Existing home sales fell 0.5% to 4.00m and the Kansas City Fed’s manufacturing survey edged up to -3 from -4, but with some cooling in the price indices. 

UST yield more than fully reversed an early spike but FX and equity moves were modest. The USD had a slightly firmer tone, with USD/JPY reaching 144 and EUR/USD falling below 1.13 after an early correction above. EUR/GBP was softer, testing 0.84, as GBP/USD reversed a dip below 1.34.