Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD as risk sentiment continues to tread lower on U.S. tariff concern and soft global outlook. The biggest loser is KRW by 0.92%, followed by SGD 0.71%, THB 0.61%, CNH and IDR 0.49%, CNY 0.39%, MYR 0.27%, TWD 0.08%, HKD 0.04% and PHP 0.02%.

USD/CNH is trading higher at 7.3010 from 7.2653 previously closed. Onshore spot market is trading higher at 7.2865 from 7.2578 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 7.1232 compared to 7.0887 previously closed.

USD/IDR spot market is trading higher at 16450 from 16370 previously closed. 1 month NDF is trading higher at 16578 from 16389 previously closed.

USD/INR onshore spot market is trading lower at 87.19 from 87.20 previously closed. 1 month NDF is trading higher at 87.59 from 87.37 previously closed.

NA Session

The USD advanced after Trump stated that tariffs on Canada and Mexico would go ahead on March 4, contradicting what he said on Wednesday. USD/CAD bounced to 1.4440 from 1.4365, but the USD gains were broad based, with AUD/USD losses to .6240 from 0.63 meaning AUD/CAD was lower. EUR/USD fell to 1.04 from 1.0480 with the EU continuing to attract hostile comments from Trump. The USD advanced versus GBP and CHF, but EUR/GBP near .8250 and EUR/CHF near .8360 were weaker. USD/JPY saw less movement, remaining firm but struggling to hold above 150. 

Mixed USD data generated little reaction but included a sharp rise in initial claims to 242k from 220k, and an upward revision to Q4;’s core PCE price index to 2.7% from 2.5% despite GDP being unrevised at 2.3%. Durable goods orders rise by 3.1% on aircraft with ex transport orders unchanged, and pending home sales saw a second straight steep decline, by 4.6%.