Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading individually against the greenback as market participants haven't waken up from the Christmas hangover. The biggest winners are KRW 0.32%, followed by PHP 0.14%, THB 0.08%, TWD 0.07%, HKD 0.05%; while the biggest losers are INR 0.08%, MYR 0.05%, CNH & SGD 0.04%.

USD/CNH is trading higher at 7.0045 from 7.0017 previously closed. Onshore spot market is trading lower at 7.0056 from 7.0058 closed before the national holiday. 12 month NDF followed the offshore market and is trading higher at 6.8860 from 6.8810 previously closed.

USD/IDR spot market is trading higher at 16745 from 16741 previously closed. 1 month NDF is trading higher at 16782 from 16760 previously closed.

USD/INR onshore spot market is trading higher at 89.84 from 89.78 previously closed. 1 month NDF is trading lower at 90.24 from 90.25 previously closed.

NA Session

Better than expected Q3 U.S. GDP prompted a USD bounce in NY trading, with the outcome increasing traders view that the Fed will be on hold for Q1 2026.  The JPY lost the most ground, which is a partial unwind of Tuesday’s Asia move.  The November industrial production data provided little impulse.  Meanwhile, traders are looking forward to 2026 and the risk on U.S. equity view supporting the USD through the holiday period.  

Meanwhile, no real reaction in FX or U.S. Treasuries to U.S. Treasury secretary reported suggestions (here) that the Fed should move to target an inflation range (e.g. 1-3% around 2%) rather than a pin point 2% and that the dot plot should be scrapped.