Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly stronger against the USD as the greenback slumped against major currency on the back and forth of Trump's tariff negotiation tactic The biggest winner is THB by 0.98%, followed by CNH 0.68%, SGD 0.6%, CNY 0.33%, PHP 0.25%, IDR 0.21%, INR 0.1%, KRW 0.09%, HKD 0.07% and TWD 0.03%; the only winner is MYR by 0.01%.

USD/CNH is trading lower at 7.2533 from 7.3029 previously closed. Onshore spot market is trading lower at 7.2639 from 7.2875 previously closed. 12 month NDF followed both the on/offshore market and is trading lower at 7.0957 compared to 7.1304 previously closed.

USD/IDR spot market is trading lower at 16445 from 16480 previously closed. 1 month NDF is trading lower at 16410 from 16479 previously closed.

USD/INR onshore spot market is trading lower at 87.27 from 87.36 previously closed. 1 month NDF is trading lower at 87.48 from 87.61 previously closed.

NA Session

Early trade saw equities falling sharply on tariff concerns and USD/JPY fell to a low of 148.10. However, equities erased most of the losses, and EUR/USD got a boost on a German plan to reform the debt bake to allow for a EUR 500bn defense fund. Reuters also reported that Trump was planning to announce minerals deal with Ukraine in his evening address to Congress. EUR/USD advanced from an early dip below 1.05 to above 1.06. EUR/GBP moved up to near .83, but GBP/USD rallied to near 1.28 from near 1.27. USD/JPY recovered above 149. 

USD/CAD was volatile as PM Trudeau detailed Canada’s retaliatory tariffs, prompting Trump to threaten still more US tariffs in response. After bottoming near 1.44, USD/CAD rose to 1.4540 before correcting back near 1.4470 as risk appetite improved. AUD/USD found support near 0.62 and rallied above .6250 as AUD/CAD reached .9050. There was no significant data, but Fed’s Williams said tariffs would have a high pass-through to consumers.