Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the greenback reversed earlier losses on more hawkish market sentiment. THB saw the largest gains of 0.59%, followed by KRW 0.14%, TWD 0.12%, MYR 0.03% and INR & HKD 0.01%; the biggest losers are CNH & SGD 0.16% CNY 0.1% and IDR 0.08%.

USD/CNH is trading higher at 7.2341 compared to the 7.2223 at previously closed. Onshore spot USD/CNY is trading higher at 7.2269 from 7.2199 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 7.0237 compared to 7.0210 previously closed.

USD/IDR spot market is closed. 1 month NDF is trading higher at 16071 from 16036 previously closed.

USD/INR onshore spot market is trading lower at 83.49 from 83.51. 1 month NDF is also trading higher at 83.63 from 83.56.

NA Session

A strong 90.4k increase in Canadian employment saw USD/CAD fall sharply to 1.3635 from 1.3680. After the Canadian data the USD initially saw modest gains versus the EUR and JPY but this had been more than fully erased before Michigan CSI data gave the USD a lift. While the headline index fell sharply to 67.4 from 77.2 higher inflation expectations (the 1-year view at 3.5% from 3.2% and the 5-10 year view at 3.1% from 3.0%) caught the market’s attention, the move possibly supported by hawkish comments from Fed’s Logan and Bowman around the same time. USD/CAD reversed most of its drop, though the USD bounce after the Michigan CSI faded elsewhere leaving the USD little changed overall. USD/JPY was a little firmer near 155.90.