Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the major movement in the greenback does not come in until the hotter than expected U.S. CPI in the New York session. THB saw the largest gains of 0.47%, followed by PHP 0.12%, MYR 0.04% and KRW 0.02%; the biggest loser is SGD by 0.46%, CNH 0.23%, HKD 0.04% and INR 0.01%.

USD/CNH is trading higher at 7.2314 compared to the 7.2152 at previous close. Onshore spot USD/CNY is closed to observe Lunar New Year. 12 month NDF followed the onshore market and is trading higher at 7.0250 compared to 7.0161 previous closed.

USD/IDR spot market is unchanged at 15595. 1 month NDF is trading higher at 15674 from 15584 previous closed.

USD/INR onshore spot market is trading higher at 83.01 from 83.00. 1 month NDF is trading higher at 83.18 from 83.07 previously closed.

NA Session

The USD surged higher through the North American session as US CPI came in stronger than expected, rising 0.4% core and 0.3% headline in January. The AUD was the biggest loser, falling more than 1% against the USD to 0.6450, while the JPY lost almost as much, rising almost 1% to 150.75. USD/CAD also rose by around 1% to 1.3575. EUR/USD fell less than a figure to test 1.07.

The bulk of the USD’s gain came soon after the data but there was no significant correction. The afternoon saw UST yields extend their gains and equities extend their losses. The USD gained momentum in the afternoon versus JPY, AUD and CAD while EUR and GBP were more stable. 

Ahead of the CPI the NFIB small business optimism fell to 89.9 in January from 91.9, reaching its lowest since May.