Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the USD began its fall after the ECB decision. SGD saw the largest gains of 0.22%, followed by CNH 0.14%, CNY 0.03%; the biggest losers are PHP 0.38%, THB 0.31%, IDR 0.19%, KRW 0.13%, MYR 0.12%, TWD 0.07% and HKD 0.06%.

USD/CNH is trading lower at 7.1190 from 7.1293 previously closed. Onshore spot USD/CNY is trading lower at 7.1177 from 7.1194 previously closed. 12 month NDF followed both the on/offshore market and is trading lower at 6.9307 compared to 6.9383 previously closed.

USD/IDR spot market is trading higher at 15439 from 15402 previously closed. 1 month NDF is trading lower at 15431 from 15443 previously closed.

USD/INR onshore spot market is trading unchanged at 83.97. 1 month NDF is trading higher at 84.02 from 84.08 previously closed.

North America Session

The ECB eased by 25bps as expected and the tone at the press conference was little changed. EUR/USD, having earlier found support near 1.10, moved gradually higher through the session, moving above 1.105 in the afternoon to reach 1.107. GBP/USD marginally outperformed, rising to 1.3120 from around 1.3040. 

US August  PPI was slightly above consensus at 0.2%, 0.3% ex food and energy but the USD was generally slightly softer, AUD/USD moving above 0.67 and USD/JPY slipping below 142 from 142.50. A WSJ report suggesting it is a close call whether the FOMC moves by 25bps or 50bps in September weighed on the USD in the afternoon. USD/CAD was an exception to the softer USD story, briefly edging above 1.36, despite a strong 22.1% rise in July Canadian building permits, before an afternoon correction. US initial claims rose marginally to 230k from 228k.