Asia Open - Overnight Highlights

EMERGING ASIA

Most EM currencies are trading individually against the greenback as Trump's comment towards weekend China-U.S. talk supported risk sentiment in the NA session. The largest loser is THB by 0.55%, followed by MYR 0.43%, IDR 0.12%, HKD 0.06% and TWD 0.04%; while the biggest winner is KRW 0.49%, INR 0.4%, PHP 0.25%, SGD 0.24%, CNY 0.06% and CNH by 0.04%.

USD/CNH is trading lower at 7.2403 from 7.2429 previously closed. Onshore spot market is trading lower at 7.2382 from 7.2428. 12 month NDF followed both the on/offshore market and is trading lower at 7.0594 compared to 7.0628 previously closed.

USD/IDR spot market is trading higher at 16520 from 16502 previously closed. 1 month NDF is trading higher at 16593 from 16578 previously closed.

USD/INR onshore spot market is trading lower at 85.38 from 85.71. 1 month NDF is trading higher at 86.14 from 85.71 previously closed.

NA Session

The USD saw some early slippage with a Trump suggestion suggesting 80% tariffs on China would be appropriate not seen as constructive for upcoming weekend talks, but a dip in USD/JPY below 145 proved temporary. EUR/USD gains failed to test 1.13 and a return to near 1.1250 was seen. GBP/USD and AUD/USD were however able to sustain moves marginally above 1.33 and 0.64 respectively. 

An exception to a softer USD tone was USD/CAD, which saw modest gains to 1.3935 from 1.3910. April’s Canadian employment report was soft, unemployment rising to 6.9% from 6.7% and employment managing a modest 7.4k increase only because of a rise in government jobs due to the election. There was no significant US data. Multiple Fed speakers suggested there was no urgency to change rates.