Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the greenback rebounded on stronger than expected NFP. IDR saw the largest gains of 0.3%, followed by THB 0.19%, INR 0.18% and CNH 0.02%; the largest losers are KRW 0.43%, PHP 0.26%, MYR 0.15% and SGD 0.01%.

USD/CNH is trading lower at 7.2478  compared to the 7.2492 at previously closed. Onshore spot USD/CNY is closed to observe a holiday. 12 month NDF followed the offshore market and is trading lower at 7.0395 compared to 7.0429 previously closed.

USD/IDR spot market is trading lower at 15848 from 15893 previously closed. 1 month NDF is trading lower at 15905 from 15914 previously closed.

USD/INR onshore spot market is trading lower at 83.29 from 83.44 previously closed. 1 month NDF is trading lower at 83.38 from 83.55 previously closed.

NA Session

The US employment report was stronger than expected with a rise of 303k, with positive detail, as unemployment fell to 3.8% from 3.9% due to employment outpacing a strong rise in the labor force, a rise in the workweek and a 0.3% rise in average hourly earnings that was rounded down. The USD bounced, EUR/USD falling below 1.08 from near 1.0850, and USD/JPY rising to 151.75 from near 151.30.  

However as the session continued the USD gains faded, despite Fed speakers Barkin, Logan and Bowman all sounding quite hawkish, either noting strong data or warning against near term easing. EUR/USD, GBP/USD and AUD/USD all ended up back near pre-data levels as equities advanced. USD/JPY remained above pre-data levels, near 151.60, with UST yields remaining higher.

Canada’s employment report with a 2.2k decline and rise in unemployment to 6.1% from 5.8% was weaker than expected. USD/CAD bounced to near 1.3650 from 1.3560 after the data before slipping back to near 1.3590, still above pre-data levels.