Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly stronger against the greenback, led by waves of USD/JPY selling from "rate check" from the U.S. side. The biggest winners are MYR 0.78%, SGD 0.65%, THB 0.63%, IDR 0.37%, CNH 0.21%, PHP 0.14%, TWD 0.13%, CNY 0.09% and KRW 0.08%; while the largest losers are INR by 0.36%.

USD/CNH is trading higher at 6.9494 from 6.9643 previously closed. Onshore spot market is trading higher at 6.9632 from 6.9685. 12 month NDF diverged from both the on/offshore market and is trading lower at 6.8172 from 6.8308 previously closed.

USD/IDR spot market is trading lower at 16820 from 16896 previously closed. 1 month NDF is trading lower at 16796 from 16838 previously closed.

USD/INR onshore spot market is trading lower at 91.95 from 91.62 previously closed. 1 month NDF is trading unchanged at 91.85 from 91.79 previously closed.

NA Session

The USD moved lower throughout the session. Through most of the morning USD/JPY was fairly stable a little above 158, but then tuned sharply lower, spurred by talk of a rate check, plunging below 156 in the afternoon. EUR/USD gains paused near 1.18 but once the level was broken bounced to 1.1825, GBP/USD rose to 1.3635 as EUR/GBP marginally extended European losses. EUR/CHF, stable in Europe, fell to .9240 from .9280. USD/CAD fell to 1.37 while AUD/USD gains came close to .69. Moves in equities and USTs were modest but oil saw significant gains.

US data had little impact with January S and P PMIs almost unchanged from December. January’s Michigan CSI was revised up to 56.4 from 54.0, with inflation expectations revised slightly lower.