Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly individually against the USD as the greenback fell in the New York session with improving sentiment. THB saw the largest losses of 0.18%, followed by CNH 0.13%, MYR 0.07% and CNY 0.02%; while the biggest winner is TWD by 0.17%, IDR 0.09%, KRW 0.08%, PHP 0.06%, SGD and INR 0.04% and HKD 0.01%.

USD/CNH is trading higher at 7.2605 compared to the 7.2507 at previously closed. Onshore spot USD/CNY is trading higher at 7.2452 from 7.2436. 12 month NDF followed both the on/offshore market and is trading higher at 7.0658 compared to 7.0578 previously closed.

USD/IDR spot market is trading lower at 16220 from 16237 previously closed. 1 month NDF is trading lower at 16165 from 16260 previously closed.

USD/INR onshore spot market is trading lower at 83.34 from 83.36. 1 month NDF is trading lower at 83.39 from 83.46 previously closed.

NA Session

The USD slipped in North America, largely on weaker S and P PMI data, manufacturing at 49.9 from 51.9 and services at 50.9 from 51.7. An 8.8% rise in new home sales shortly after was ignored. Equities were firmer, allowing commodity currencies to rise, while EUR/USD moved above 1.07. Before the data GBP saw support from comments from BoE’s Pill, who sated he was erring on the side of caution on cutting rates. GBP/USD reached 1.2450 while EUR/GBP fell below .86.

USDJPY saw a volatile day, falling below 154.60 from 154.85 on the PMI data before reversing most of the slide even as USD losses were sustained elsewhere. However a Nikkei report that the BoJ would discuss the impact of JPY weakness at its upcoming meeting delivered another sudden slide to a marginal fresh low for the day at 154.56 though this slide was also largely reversed, as USD/JPY returned to 154.80.