Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly weaker against the greenback as U.S. PPI sends shockwave throughout global market. The biggest losers are KRW 0.77%, followed by SGD 0.36%, THB 0.32%, PHP 0.29%, MYR 0.12%, TWD 0.09%, INR 0.08%, CNY 0.07% and CNH 0.01%; while the largest losers is IDR by 0.53% and HKD 0.21%.

USD/CNH is trading higher at 7.1821 from 7.1817 previously closed. Onshore spot market is trading higher at 7.1816 from 7.1766. 12 month NDF diverged from both the on/offshore market and is trading lower  at 7.0222 from 7.0227 previously closed.

USD/IDR spot market is trading lower at 16115 from 16202 previously closed. 1 month NDF is trading higher at 16183 from 16116 previously closed.

USD/INR onshore spot market is trading higher at 87.55 from 87.43. 1 month NDF is trading higher at 87.82 from 87.58 previously closed.

NA Session

US PPI shocked sharply on the upside, with gains of 0.9% overall and ex food and energy, while initial claims fell to 224k from 227k. Fed’s Daly and Musalem argued against a 50bps easing in September, while Bostic saw positive signals from the consumer. With the PPI shock the main story, UST yields and the USD advanced, extending initial gains into the afternoon before a marginal late correction.  

USD/JPY rallied to 147.80 from 146.50 as EUR/JPY rebounded above 172 from 171. EUR/USD fell to 1.1650 from 1.1685 with EUR/GBP sustaining its European losses as GBP/USD fell to 1.3540 from 1.3580. USD/CAD moved above 1.38 and AUD/USD fell to .65 with AUD/CAD slightly softer near .8970.