Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as major USD movement came in the New York session and most Asia market haven't exit the holiday mood yet. THB saw the largest gains of 0.43%, followed by TWD 0.23%, PHP 0.12%, MYR and CNH 0.07% and INR 0.03%; the biggest loser is KRW by 0.11%, SGD 0.1%, HKD 0.03%.

USD/CNH is trading lower at 7.2128 compared to the 7.2176 at previously closed Onshore spot USD/CNY is closed to observe Lunar New Year. 12 month NDF followed the onshore market and is trading lower at 7.0140 compared to 7.0203 previously closed.

USD/IDR spot market is trading higher at 15624 from 15623 previously closed. 1 month NDF is trading higher at 15671 from 15649 previously closed.

USD/INR onshore spot market is trading lower her at 83.01 from 83.04. 1 month NDF is trading higher at 83.10 from 83.08 previously closed.

NA Session

The USD rose across the board after the stronger than expected PPI data for January, though by the end of the session the move was largely reversed, with the USD ending little changed. PPI was considerably stronger than expected at 0.5% m/m core, and the US money market has further reduced expectations of Fed easing to just three cuts this year with the first not fully priced in until July. Initially, the USD saw the largest gains against the EUR and AUD, but for the moment EUR/USD remains in the 1.07-1.08 range that has held since the employment report, while AUD eventually outperformed. 

Housing data released with the PPI showed starts down sharply but this was probably due to weather with permits little changed. The Michigan CSI saw only a marginal ruse to follow two straight strong gains. Fed’s Daly said three rate cuts was reasonable for 2024,