Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the greenback is indecisive after the overnight U.S. CPI and diverging U.S. PPI data. IDR saw the largest gains of 0.35%, followed by MYR 0.34%, THB 0.21%, SGD 0.14%, CNY 0.10% and INR 0.04%; the biggest losers are KRW by 0.22%, TWD 0.17%, PHP 0.13% and CNH 0.06%.

USD/CNH is trading higher at 7.2723 from 7.2677 previously closed. Onshore spot USD/CNY is trading lower at 7.2504 than 7.2579 previously closed. 12 month NDF followed the offshore market and is trading higher at 7.0709 compared 7.0685 to previously closed.

USD/IDR spot market is trading lower at 16137 from 16195 previously closed. 1 month NDF is trading higher at 16115 from 16113 previously closed.

USD/INR onshore spot market is trading lower at 83.53 from 83.56 previously closed. 1 month NDF is trading unchanged at 83.59.

NA Session

US June PPI delivered mixed data, a moderate 0.2% rise overall, a strong 0.4% rise ex food and energy, but a flat outcome ex food energy and trade, though with upward revisions to May the net data was stronger than expected. However the USD bounce on the data was brief and the USD ended weaker. 

The sharpest move was on USD/JPY, with BoJ action suspected rather than confirmed, which saw a low below 157.50 and ended below 158. EUR/USD nudged above 1.09 while GBP/USD and AUD/USD gains stalled just below 1.30 and 0.68 respectively. USD/CAD was little changed while EUR/CHF was firm moving back above .9750.

Weaker preliminary July Michigan CSI data at 66.0 from 68.2 with inflation expectations, both 1-year and on a 5-10 year view, at 2.9% from 3.0% helped to sustain a softer USD tone.