Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD despite U.S. NFP missed as sentiment are more clam on the last trading day of the turbulent week. The biggest winner are THB by 0.4%, followed by IDR 0.34%, PHP 0.3%, TWD 0.22% and INR 0.17%; the biggest losers are SGD 0.25%, CNH 0.2%, CNY 0.13%, KRW 0.1%, MYR 0.09% and HKD by 0.05%.

USD/CNH is trading higher at 7.3033 from 7.2884 previously closed. Onshore spot market is trading higher at 7.2947 from 7.2852 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 7.1305 compared to 7.1247 previously closed.

USD/IDR spot market  is trading higher at 16283 from 16341 previously closed. 1 month NDF is trading higher at 16356 from 16355 previously closed.

USD/INR onshore spot market is trading higher at 87.47 from 87.58 previously closed. 1 month NDF is trading higher at 87.93 from 87.78 previously closed.

NA Session

US non-farm payrolls were weaker than expected with a rise of 143k but the USD saw only a momentary dip with average hourly earnings stronger than expected with a rise of 0.5% and unemployment falling to 4.0% from 4.1%. Fed speakers Kashkari, Goolsbee and Kugler all later stated the labor market remained healthy. A dip in the Michigan CSI, in particular a sharp rise in the 1-year inflation view to 4.3% from 3.3%, saw equities and USD/JPY dip. 

Equity weakness extended on a Reuters report that Trump planned to issue reciprocal tariffs against unnamed countries, which saw USD/JPY extend losses to see lows below 151 but the USD bouncing elsewhere. Trump later confirmed that next week would see measures taken on many countries. USD/JPY rebounded to around 151.40, but EUR/USD was the main loser, falling to 1.0330 after briefly touching above 1.04 on the US employment data. USD/CAD, after slipping below 1.43 assisted by a strong 76k increase in Canadian employment, corrected on the tariff report, but later fell back to touch fresh lows for the day.