Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly stronger against the USD as the USD is broadly weaker on continuously soft U.S. Treasury Yields. THB saw the largest gains of 1.68%, followed by PHP 0.63%, IDR 0.5%, TWD 0.37%, MYR 0.35%, CNY 0.34%, CNH 0.33%, SGD 0.28%, KRW 0.07%, and HKD 0.05%.

USD/CNH is trading lower at 7.0899 from 7.1134 previously closed. Onshore spot USD/CNY is trading lower at 7.0887 from 7.1128 previously closed. 12 month NDF followed both the on/offshore market and is trading lower at 6.9053 compared 6.9252 to previously closed.

USD/IDR spot market is trading lower at 15401 from 15480 previously closed. 1 month NDF is trading lower at 15421 from 15461 previously closed.

USD/INR onshore spot market is trading higher at 83.98 from 83.97 previously closed. 1 month NDF is trading higher at 84.08 from 84.07 previously closed.

North America Session

The USD slipped on a weaker than expected 99k rise in August’s ADP employment report, EUR/USD reaching a high of 1.1120 and USD/JPY reaching a low of 142.85 though shortly after a fall in initial claims to 227k from 232k gave the USD some support. After the August ISM services index edged up to 51.5 from 51.4 the USD gained some momentum, EUR/USD falling to a low of 1.1075 and USD/JPY rising to a high of 144.23, though the bounce subsequently faded and the USD ended little changed, EUR/USD near 1.11 and USD/JPY near 143.40.

Moves elsewhere were marginal though GBP. AUD and CAD managed marginal gains in the afternoon as equities came off lows and UST yields slipped. US data also saw a downward revision to Q2 unit labor costs, to 0.4% annualized frim 0.9%, released alongside initial claims.