Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading individually against the greenback as USD came in stronger than expected. The biggest losers are KRW 0.34%, MYR 0.17%, IDR 0.15%, PHP 0.04% and SGD 0.02%; while the largest winners are THB by 0.12% TWD 0.11%, CNY 0.10%, CNY 0.08% and HKD 0.01%.

USD/CNH is trading lower at 6.9632 from 6.9701 previously closed. Onshore spot market is trading lower at 6.9671 from 6.9729. 12 month NDF followed both the on/offshore market and is trading lower at 6.8440 from 6.8503 previously closed.

USD/IDR spot market is trading higher at 16885 from 16860 previously closed. 1 month NDF is trading higher at 16903 from 16875 previously closed.

USD/INR onshore spot market is  closed. 1 month NDF is trading higher at 90.61 from 90.48 previously closed.

NA Session

US data was stronger than expected, with initial claims falling to 198k from 207k and both the Philly Fed and Empire State manufacturing surveys recording positive January readings after negative Decembers. The USD, already rising ahead of the data, but the gains faded partially in the afternoon.

USD/JPY after bouncing to 158.88 returned to near pre-data levels near 158.50 while positive equities helped AUD/USD advance to touch .67 and USD/CAD edge below 1.39. EUR/USD fell from pre-data levels around 1.1635 to near 1.16. The EUR saw gains versus both GBP and CHF.

Fed speakers varied in tone but none sounded in a hurry to ease. The US announced a deal with Taiwan that would reduce tariffs in exchange for investment in the US.