Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly stronger against the greenback as USD follows the move in U.S. Treasury yields. The biggest winners are KRW 0.39%, followed by INR 0.27%, SGD 0.19%, MYR & CNH 0.07%, HKD 0.05% and CNY 0.03%; while the largest losers are PHP by 0.14%, followed by IDR 0.05% and TWD 0.02%.

USD/CNH is trading lower at 7.1249 from 7.1298 previously closed. Onshore spot market is trading lower at 7.1242 from 7.1271 closed before the national holiday. 12 month NDF followed both the on/offshore market and is trading lower at 6.9847 from 6.9901 previously closed.

USD/IDR spot market is trading higher at 16581 from 16576 previously closed. 1 month NDF is trading lower at 16593 from 16613 previously closed.

USD/INR onshore spot market is trading lower at 87.82 from 88.06 previously close. 1 month NDF is trading higher at 88.12 from 87.96 previously closed.

North American session

The USD slipped as equities took a tumble led by financials due to concerns over two regional banks, dragging UST yields and USD/JPY lower, the latter falling around a big figure to 150.30. EUR/USD advanced to near 1.17 from 1.1650. EUR/GBP edged above .87 but EUR/CHF slipped below .9270 after an early move above .93 as risk sentiment soured. AUD/USD saw modest losses below .65 but USD/CAD remained close to 1.4050. 

Early comments from Fed’s Waller, backing a  25bps easing in October but expressing caution beyond that gave UST yields a brief lift that was more than fully erased later. US data saw a weaker Philly Fed manufacturing index of -12.8 from September’s strong 23.2, but less weakness in the detail. October’s NAHB homebuilder’s index bounced to 37 from 32 and the budget deficit showed a marginal dip in the fiscal year to September assisted by tariff revenues.