Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as market participants are getting numb towards the drastic changes in tariff daily. The biggest winners are THB  by 0.26%, followed by INR 0.24%, IDR 0.12% and PHP 0.02%; while the largest losers are KRW 0.25%, SGD 0.22%, MYR 0.19%, CNH  0.09%, CNY 0.07%, HKD 0.04% and TWD 0.02%.

USD/CNH is trading higher at 7.2480 from 7.2415 previously closed. Onshore spot market is trading higher at 7.2432 from 7.2279 previously closed. 12 month NDF diverged from both the on/offshore market and is trading lower at 7.0684 compared to 7.0695 previously closed.

USD/IDR spot market is trading lower at 16425 from 16445 previously closed. 1 month NDF is trading lower at 16401 from 16466 previously closed.

USD/INR onshore spot market is trading lower at 87.00 from 87.21 previously closed. 1 month NDF is trading lower at 87.17 from 87.40 previously closed.

NA Session

US PPI came in significantly weaker than expected at unchanged overall and -0.1% ex food and energy, but the market reaction was very brief. Initial claims fell to 220k from 222k.  

With Trump threatening a 200% tariff on EU wine, EUR/USD saw an early dip to a low of 1.0823 but this was reversed, EUR/USD returning to a narrow range above 1.0850. GBP/USD and AUD/USD also saw modest dips reversed. Tariff worries did see equities under pressure which saw USD/CAD rise to 1.4450 and USD/JPY fall below 147.50 before modest late corrections. AUD/CAD gains stalled ahead of 0.91.