Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly stronger against the USD as risk sentiment was mostly positive in earlier session but sour throughout the day. The biggest winners are KRW by 0.61%, MYR 0.52% TWD 0.43%, THB 0.42%, IDR by 0.40%, PHP 0.22%, INR 0.12% and CNH by 0.08%; the largest loser are SGD by 0.06% and HKD 0.02%.

USD/CNH is trading lower at 7.3400 from 7.3460 previously closed. Onshore spot market is trading lower at 7.3280 than 7.3281 previously closed. 12 month NDF followed both the on/offshore market and is trading vat 7.1744 compared to 7.1818 previously closed.

USD/IDR spot market is trading lower at 16131 from 16195 previously closed. 1 month NDF is trading higher at 16221 from 16199 previously closed.

USD/INR onshore spot market is trading lower at 85.72 from 85.82 previously closed. 1 month NDF is trading higher at 86.06 from 86.00 previously closed.

NA Session

The USD moved higher in Europe, EUR/USD edging marginally below 1.04. Eurozone CPI was in line with expectations rising to 2.4% yr/yr from 2.2% with the core stable at 2.7%.

The main event of the day was a bounce in November US job openings, by 259k to 8.098m, the highest level since May, At the same time December’s ISM services index rose to 54.1 from 52.1. EUR/USD slipped to 1.0365 on the data extending to below 1.0350 while GBP/USD fell to 1.2480. EUR, GBP and AUD losses were sustained, AUD/USD falling to .6230, but a bounce in USD/JPY to a high of 158.42 was not, returning to near pre-data levels around 157.75 as equities slipped.

Trump threatened economic action against Denmark (over Greenland) and Canada which helped to sustain pressure on the EUR and undermined a CAD recovery after USD/CAD rose to 1.4366 on the US data. Canadian officials voiced their objections to Trump’s remarks.