Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD as the greenback gained strength from stronger U.S. Treasury Yields. The only winners are INR with the largest gains of 0.22%, followed by INR 0.02%; the biggest loser is CNY by 0.63%, followed by TWD 0.32%, PHP 0.19%, KRW 0.15%, THB 0.13%, HKD 0.12%, MYR 0.07% and CNH 0.04%.

USD/CNH is trading higher at 7.0738 from 7.0712 previously closed. Onshore spot market reopened higher at 7.0633 from 7.0187 previously closed. 12 month NDF diverged from the on/offshore market and is trading lower at 6.9006 compared to 6.9043 previously closed.

USD/IDR spot market is trading lower at 15655 from 15687 previously closed. 1 month NDF is trading lower at 15690 from 15750 previously closed.

USD/INR onshore spot market is trading lower at 83.96 from 83.97 previously closed. 1 month NDF is trading lower at 84.05 from 84.11 previously closed.

North America Session

In a quiet session the USD made marginal gains, guided most by UST yields, USD/JPY rising to 148.35 from 148. USD gains versus GBP and EUR were even more marginal. EUR/CHF extended European gains to .8415. USD/CAD moved above 1.3650 but AUD/USD was stable, seeing AUD/CAD back above .92.

August’s US trade deficit of $70.4bn was down from $78.9bn in July but in line with consensus, with the average of July and August data showing little change from Q2.