Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly stronger against the greenback as the USD seem no rebound until the U.S. session, triggered by strong GDP figure. The biggest winners are MYR 0.34%, followed by SGD 0.27%, THB 0.19%, CNH 0.17%, CNY 0.11%, HKD 0.04% and TWD 0.03%; while the biggest losers are PHP 0.22%, KRW 0.03%, IDR 0.02% and INR 0.01%.

USD/CNH is trading lower at 7.0193 from 7.0311 previously closed. Onshore spot market is trading lower at 7.0296 from 7.0370 closed before the national holiday. 12 month NDF followed both the on/offshore market and is trading lower at 6.8961 from 6.9019 previously closed.

USD/IDR spot market is trading higher at 16780 from 16776 previously closed. 1 month NDF is trading lower at 16767 from 16791 previously closed.

USD/INR onshore spot market is trading higher at 89.66 from 89.65 previously closed. 1 month NDF is trading lower at 90.02 from 90.10 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.