Published: 2023-12-18T00:00:05.000Z

Asia Open - Overnight Highlights

FX Analyst

265

EMERGING ASIA

EM currencies perform individually against the USD as the greenback picked itself up after a slump in the previous day as the aftermaths of dovish FOMC. THB saw the largest gains of 0.53%, followed by INR 0.39%, PHP 0.24%, TWD 0.22%, MYR 0.07%, HKD 0.05%, IDR 0.03%; while the biggest loser is SGD 0.4%, CNH 0.15%, CNY 0.13% and KRW 0.08%.

USD/CNH is trading higher at 7.1346 compared to the 7.1236 at previous close. Onshore spot USD/CNY is trading higher at 7.1215 from 7.1119. 12 month NDF followed the offshore market and is trading higher at 6. 9744 compared to 6.9736 previous closed.

USD/IDR spot market is trading lower at 15493 from 15502 last closed. 1 month NDF is trading higher at 15522 from 15482 previous closed.

USD/INR onshore spot market is trading lower at 83.00 from 83.32. 1 month NDF is trading higher at 83.09 from 83.39 previously closed.

Major

The USD gained ground through the North American session, boosted by the comments from the Fed’s Williams, who suggested that the market had overreacted to the FOMC. Fed’s Bostic was also cautious about easing, though Goolsbee sounded more dovish. EUR/USD lost over half a figure to touch below 1.09, while USD/JPY made more modest gains above 142.
However, US data was generally weak. The Empire manufacturing index fell sharply into negative territory, and both industrial production and manufacturing PMI suggested softness, but the services PMI was better than expected.
BoC governor Macklem said 2% inflation was in sight, but said it was too early to cut rates and the CAD outperformed, with USD/CAD dropping modestly to 1.3370.

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Analyst Declaration
I,Cephas Kin Long Yung, the FX Analyst declare that the views expressed herein are mine and are clear, fair and not misleading at the time of publication. They have not been influenced by any relationship, either a personal relationship of mine or a relationship of the firm, to any entity described or referred to herein nor to any client of Continuum Economics nor has any inducement been received in relation to those views. I further declare that in the preparation and publication of this report I have at all times followed all relevant Continuum Economics compliance protocols including those reasonably seeking to prevent the receipt or misuse of material non-public information.