Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly weaker against the greenback for strong haven bids grasp the market and sent USD flying. The biggest losers are KRW by 1.32%, THB 0.48%, SGD 0.41%, CNH 0.33%, CNY 0.21%, PHP & MYR 0.03%, HKD 0.2%; while the only winners are INR 0.6% and IDR & TWD 0.01%.

USD/CNH is trading higher at 6.9180 from 6.8951 previously closed. Onshore spot market is trading higher at 6.9113 from 6.8971 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 6.7753 from 6.7645 previously closed.

USD/IDR spot market is trading lower at 16883 from 16885 previously closed. 1 month NDF is trading higher at 16993 from 16886 previously closed.

USD/INR onshore spot market is trading lower at 91.60 from 92.15 previously closed. 1 month NDF is trading lower at 92.13 from 92.46 previously closed.

NA Session

While Europe saw brief dips in both the oil price and USD, anxieties over the Middle East built through the North American session with oil seeing strong gains and equities sliding, before a late correction as the US Treasury stated it would announce measures to combat rising oil prices.

The commodity currencies came particular under pressure with AUD/USD seeing lows below .70 from .7050 and USD/CAD seeing highs above 1.37 from 1.3640 with only partial late corrections. EUR/USD was relatively stable, returning to near 1.16 after bouncing above in Europe and drifting below in North America. EUR/GBP was slightly weaker with GBP/USD finding support at 1.33. USD/JPY rose as high as 157.85 from around 157 before a late correction to 157.50.

US data was on the firm side of expectations with weekly initial claims unchanged at 213k and Q4 non-farm productivity and unit labor costs both increasing by 2.8% annualized, but had little impact.