Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD as risk sentiment continues to be weighed by tariff concern in earlier sessions before New York when sentiment improves. The biggest loser is KRW by 0.92%, followed by IDR 0.78%, THB 0.75%, MYR 0.48%, INR 0.36%, SGD 0.22%, PHP 0.15% and HKD 0.02%.

USD/CNH is trading lower at 7.2934 from 7.3010 previously closed. Onshore spot market is trading lower at 7.2784 from 7.2865 previously closed. 12 month NDF followed both the on/offshore market and is trading lower at 7.1228 compared to 7.1232 previously closed.

USD/IDR spot market is trading higher at 16596 from 16454 previously closed. 1 month NDF is trading lower at 16569 from 16578 previously closed.

USD/INR onshore spot market is trading higher at 87.51 from 87.20 previously closed. 1 month NDF is trading higher at 87.73 from 87.59 previously closed.

NA Session

US core PCE prices were as expected with a moderate 0.3% increase. There were some surprises in the other US releases, a 0.2% fall in consumer spending but a 0.9% rise in personal income, and a massive jump in the advance goods trade deficit to $153.3bn from $122.1bn as imports surged ahead of threatened tariffs. There was little immediate reaction to the US data, though the trade and spending data turned the Atlanta Fed’Q1 GDP estimate negative. A stronger than expected 2.6% annualized increase in Q4 Canadian GDP saw USD/CAD slipping to test 1.44, a move that was not sustained.  

The USD later advanced as a meeting between Trump and Ukraine’s Zelenskiy turned into a confrontation, with the exception of a relatively stable USD/JPY. EUR/USD led the way, falling well below 1.04. AUD/USD fell below .62 and USD/CAD moved above 1.4450.