Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the greenback yo-yo on stronger PPI and Fed speaker's comment. THB saw the largest gains of 0.41%, followed by MYR 0.25%, SGD 0.13%, PHP 0.04% and INR 0.02%; the biggest losers are IDR 0.12%, KRW 0.07% and TWD 0.02%.

USD/CNH is trading higher at 7.2398 compared to the 7.2397 at previously closed. Onshore spot USD/CNY is trading higher at 7.2337 from 7.2334 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 7.0298 compared to 7.0289 previously closed.

USD/IDR spot market is trading higher at 16100 from 16081 previously closed. 1 month NDF is trading lower at 16116 from 16124 previously closed.

USD/INR onshore spot market is trading lower at 83.51 from 83.52. 1 month NDF is also trading lower at 83.58 from 83.59.

NA Session

The USD saw an early bounce as April US PPI increased by a stronger than expected 0.5% on both the headline and ex food and energy rates, though the reaction faded ahead of comments by Fed’s Powell, with downward revisions to March, both headline and ex food and energy, to a 0.1% decline from increases of 0.2% offsetting much of the upside surprise in April.

The USD slipped after Powell’s comments, which noted a lack of further progress on inflation and reduced confidence that inflation would fall further, but also saw the labor market moving into better balance and seeing a rate hike as unlikely.

USD/JPY ended little changed near 156.45, while EUR/USD rose 20 pips from pre-data levels to 1.0820 while GBP/USD rose 30 pips to 1.2590. AUD/USD advanced to .6625, outperforming the CAD. EUR/CHF advanced to .9810.